George, this isn’t exactly a groundbreaking revelation; college teams spend the nights in hotels all the time, even for home games. And, of course, road games require a place to sleep.
It should be noted that, generally, the revenue gained on any given Saturday far exceeds the money spent on hotels and other largesse–which, I’ll admit, exists. But the money comes out of Athletic Department coffers, not general university funds. A good, disciplined football team that spends, say, $17 thousand on a hotel on a Friday night could bring in millions the next day (financing not only their spending, but usually those of most other sports).
If Michigan wants to put its players in a hotel the Friday before the Ohio State game to make sure its players are well-fed and rested before the big game, that’s a cost I’m sure they can afford.