Last month on vacation with the wife (x1), kids (x3 teenagers), and dog (x1), I used Points + Extra Points to upgrade two 1BR suites at an RI in Westminster, CO to two 2BR suites.

I had to look around, as not all properties in Denver offered the 2BR suites on points. YMMV, depending upon your destination. Use marriottrewards.com to perform a search ... and I suggest stating that you have 5 persons per room, otherwise the search engine may not show you the 2BR suites (because it may not think you need a room that large).

If I remember correctly, they offered all combinations of payment:

1. $ for the room + upgrade (of course :-)
2. $ for the room + points for the upgrade
3. points for the room + $ for the upgrade
4. points for the room + points for the upgrade