Uhm, why are you withholding the name of the property? To what end? I would definitely like to know. Otherwise I suggest the moderator to move this thread out of the Starwood forum.
Personally, I don't think the advance warning was sufficient--although as the previous poster said Pyrethrins are quite commonly used, proper warning should have been made (including announcement by the pool) allowing guests who wanted to do so to vacate.
BTW, more info at
http://npic.orst.edu/factsheets/pyrethrins.pdf. The manager was correct on the risks, but provided very poor customer service to a guest who had never seen the routine before.