FWIW, I would have called Starwood reservations right away. If they confirm that you booked NS, then they may perceive that it's the hotel's fault (or even that the hotel is LYING), and may intercede for you. Remember, the hotel is only concerned (particularly if independently-owned) with return business from you at that location. Starwood is concerned with your feelings toward Starwood in general, and may be more disposed toward making you happy.