The answers here are just downright silly.
The hotel has a PMS (property management system) that interfaces with the key machine.
When making new keys the PMS asks the desk user if you want to make a new key (wipes all previous keys) or a duplicate of the currently issued keys (creates a copy, doesn’t wipe other keys.) If you choose to make new keys, all keys still work until that new key came in contact with the lock. The programming on the new key tells the lock to forget all previous keys and only work for the newly programmed ones. When you don’t pay or your card comes up fraudulent, we make a new key and swipe it on your lock, without even opening the door; it wipes your keys and forces you to come to the desk so we can straighten out your billing.
Source: Hotel GM for the last 17 years. 23 years in hotels.
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