It Kinda works
A hotel I stay at frequently has had a broken rowing machine since I started staying there a year ago. I finally received a response from the General Manager stating that the rowing machine can not be repaired due to its age but, given that only the computer isn't working, he chose to leave the rowing machine in place.
I have never seen anyone use the rowing machine, and have avoided it myself as, without a computer, it's much more difficult to monitor a workout.
But I digress, personally, I think that any equipment in a for-rent facility should be kept in good repair. When it is not, that is a sign of poor management. But, that's just in my book apparently.
I do think that if Marriott ever opens a hotel in Mongolia I know who would make a good GM.