I think the real question is who provided the muffins and got $16 for them. I expect that this was a payoff to a well-connected service-provider, perhaps run by a friend of the Obamas or Holder.
You can count on it.
No, it's typical run-of-the-mill big-city hotel prices. A bowl of corn flakes at the Waldorf-Astoria is $8.50, after all.