This is becoming more common because more programs outside of FHR are offering upgrades on arrival. Hotels are becoming smarter so they will limit the rooms that will upgrade.

Make sure you talk to a PTS consultant and have them CALL the hotel to find out which categories will upgrade.

FHR upgrades the majority of the time. I've had better experience with them than other programs.

Another good thing about FHR is that you can book the lower rate ( in case they are not giving out upgrades), then when you get to the hotel know the category that upgrades and ask to go to the category that will upgrade.

I used Visa Signature (joke - Kiwi) three weeks ago and it was a cluster. FHR a week later had no issues. With FHR I knew that regular rooms did not upgrade to suites, but suites upgraded to villas. If you know this...you won't be surprised.