I appreciate the communication of this problem and hope Choice ends up resolving the matter appropriately. I certainly wouldn't want to end up in such a situation if I can at all help it.

Don't Choice point bookings for Preferred Hotels ordinarily end up resulting in some kind of voucher being sent directly (via fax or email) to the Preferred Hotel property itself (in much the same manner as used by some large online travel agencies and consolidators for prepaid hotel bookings)?

If so, then perhaps asking Choice Hotels to send the voucher copy to the reserving guest as well might be a sort of risk mitigation strategy.

So far, the only problems I've had with redeeming Choice points for hotel properties that are a redemption option are as follows: when using my Choice (US) points for some same-day Choice hotel properties in the Nordic/Scandinavian and Baltic regions. Even then I usually don't have a problem, although on at least one occasion there was a quite substantial mess-up for a late night check-in in Kalmar, Sweden where the hotel staff was more or less useless to quasi-confrontational (never encountered such a thing before at any hotel) until they realized I was not just showing up there with no possibility to get things worked out around them. [I ended up in a much lower standard of room then what I had booked (awful view and furthest point from anything), something which is not usually a problem I've encountered with Choice Hotels anywhere -- as what I book using points with them is generally what I get with very, very rare exception.]