Even if the font of the W were exactly the same, there's no possibility that anyone would mistake "W Motels Worldwide" for "W the President." They're just trying to generate publicity for their business. It'll be tossed. Besides, they should beware of alienating all the Dubya supporters.
The hotel has a genuine concern here. Some people who are planning on staying at the W hotel are accidently going to vote for George Bush instead. This could both turn the election again and give the hotel's competitors an undeserved market share.
I've never heard of them, but I'll sleep on the sidewalk before I ever patronize them.