Seems to me that they are offering something above the program rules. If you want a suite, they may give it to you, but at the expense of RC access. Sounds fair to me, and sometimes it would be a good choice.
To be clear, HGP does not allow for suite upgrades, period. Even at PH. So if you really want a suite, this would be a nice program. Of course some hotels offer both anyway.
BTW, SPG platinum SAYS they offer suites, but in my experience they are very reluctant to give them out.
------------------
United UGS, 1K, Million Mile Flyer
Hyatt Lifetime Diamond
Starwood Platimun