Eugene -

You just said the same thing I did: "...you were entitled to $200 cash plus two free room certificates, in addition to alternate lodging for the night."

So, how did I go wrong?

Also, since he accepted an entirely different form of compensation, he isn't entitled to any more, even if he does have elite status. Sure, he apparently wasn't offered the right choice. So he could go back to Marriott and should be able to get what he was entitled to but would likely have to give up the 80K. No thanks.