sme2009

I have an upcoming stay this Friday for 3 nights. Yesterday I was sent a confirmation from the hotel that my room was upgraded to a Deluxe Suite per my SNA certs. This morning, I received an e-mail from the hotel reservation agent stating that the confirmation was sent in error and that the room was unavailable for Friday night and offering me the option of a standard room Friday and moving to the upgraded to the Deluxe Suite Saturday and Sunday, or a lower level accommodation for 3 nights with a refund of my SNAs. The downgrade is significant (room half the size and in the center of the hotel as opposed to a corner with prime ocean view), but given I'm at the end of a long 5 stop business trip, I don't feel like moving rooms either.

My question is, has anyone else experienced this? SPG told me that there has to be availability in the res system or there's no way the upgrade can be confirmed. Also, if I help them out, should I expect some sort of compensation, or is this just the way the cookie crumbles?