Completely unacceptable and against Marriott policy, unless this was a "non-guaranteed" reservation, also know as a 6PM hold (a reservation made without a credit card).

Assuming it was guaranteed with a credit card, then even no-status guests have rights per Marriott policy. The hotel should have profusely apologized, immediately informed the guest that they had a comparable room ready to go at another hotel for the first night at no charge to the guest, offered to pay transportation to and from, and offered to pay for a phone call to alert colleagues.