Having done a lot of public speaking at medical and legal meetings at fancy hotels and being part of planning committees that arrange these events, I have had some exposure to the cost of hotel catering and services. It can be shocking to say the least. $ 500 to rent a computer projector for half a day; $ 250 to set it up, $ 3 for a can of Sprite, $ 14 for a piece of cheesecake, etc.
Not to excuse the subject of the original post, but I can easily see paying $ 16 for a muffin at a conference. In my experience, these prices would not be out of line in downtown NYC, Washington DC, San Francisco, Atlanta or other big cities and hotels catering to the business convention trade.