Priority Club has had these Points and Money awards for already some time. If the hotel has award availability, you can always choose to pay partially by cash. This is, in essence, buying points from Priority Club.
I took advantage of it for the very first time last week for a stay at the InterContinental Fiji Golf Resort & SPA. I would have had enough points just to do a basic redemption, but decided to buy 10K Priority Club points for $60. I could have bought 5000 Priority Club points for $40.
What happens here is that Priority Club sells you the points first, as you can see from the attached account statement, and then withdraws the number of points required for the award night. If you later cancel the award night, you will get the full amount of points credited back to your account. Priority Club will not reverse the point sale transaction.