You MUST go to the GM. I cannot believe any sane hotel manager faced with the current economic climate would turn down business for an adidtional $9 per night.
As an aside--my one major objection to RI is the significantly reduced points accrual. When you're talking about nights exceeding 100, that is a huge amount of "lost points".
You do not mention which brand the competing option is affiliated with--but you may want to check into an elite status match.