I understand Brian's reluctance in front of his co-worker. However, as another poster suggested, I would have been on the phone as soon as I got to the room with the manager until the problem was favorably resolved.

Someone at the hotel was NOT doing their job properly. Diamonds should be taken care of first, then golds, then silvers, then basic members. They should get their reserved room type, at worst, and the higher members should be given the upgraded rooms.