I commute a fair distance into work. I have on occasion paid for a cheap hotel (i can get a crap Travelodge with no air con for about £80 if i am lucky). I would NEVER expect my employer to pay for this. This is my personal decision based on where i want to live. This is exactly the same situation here. If the players are too far away its their own choice and they can pay for a night. If they live close they wouldnt need it.
If they were on a business trip (or have to have somewhere overnight cos we are playing Plymouth at 12.30), its a whole different story.
Sensible in my opinion.