I would just like to make a comment to the OP. This is not a comment upon Starwood, the hotel, anyone else or anything else......
I just really hope that this whole experience doesn't ruin your whole holiday, and that you are still able to have a good time....irrespective of the outcome.
For family holidays, we book our tickets on a non-changeable J class fare.....and so, if I had been in your situation, I would have been faced with losing £2,000 per head, per flight (two adults, two children of which only one is fare paying); or, alternatively, taking a different property at a much higher rate - a no win situation, and so I really feel distressed for you.
I would probably have travelled to whatever alternative resort offered feeling upset, and it may have sullied the whole trip......and I just hope that you don't experience anything like that at all.
....and I do hope things get resolved so that you don't lose out....and I hope this doesn't ruin your relationship with Starwood either.
And finally, a comment upon Starwood...... although it's awful what has happened, I hope Starwood learn from this and help all Starwood hotels to learn better from this experience in order for customers to never suffer financial loss and emotional distress.