Sorry, but I lost the overview.
OP booked a room, did not get an upgrade, so did not use the room, but paid for it.
OP's friend showed up 15 minutes later, did not have a reservation, booked a suite on the way to the property after receiving a heads up that the OP did not get a suite and both the OP and his friend stayed at the suite.
OP called Corporate to request a waiver on the cancellation policy, because he was able to use his friend's suite and did not want to pay for his room, because he did not receive an upgrade...