Hmmn, boy's scout motto "Be Prepared" comes to mind here.

If planned arrival that late, hotel when overbooked will assume you are not coming. so ... should always contact ahead of late arrival , on the morning of stay, to say you will arrive late even give flight number; and if IHG elite add to your booking to reduce liklihood of being walked as a non-status guest.

I don't think one needs accept the first offer of hotel alternative, If i was told 5 miles, I would immediately reply that they need to supply a hotel much nearer if not on a 1night stay, and where I need public transport as not having my own car.

The walking IHG Hotel does not have to use aniother IHG hotel, and it would have helped if you knew of other 'airport' hotels nearby you could have requested instead. It is not your problem if hotel nearer than the CP is more costly, unless you are trying to upgrade from say HIE to Shangri-La.
They offerered you a standard of hotel (CP) at least as comparable, but you could ask for a more local not so good switch if location is important to you, if local same standard hotel is not available.

In terms of compensation, there is no IHG to compensation scheme, although eg Marriott have a written scheme of requirements/compensation if an elite is walked.