Unfortunately, yes. There are people who pay for the rooms on the upper floors that are more centrally located.

I was told, as a repeat, multiple time, guest and a diamond for far longer than you, that because of all the people trying to redeem at this hotel, they had to limit the "free" suites to those on the first & second floor.

You can call and ask if you can pay an upcharge to one of the deluxe suites.

Or you might get lucky and they upgrade you when you arrive. But for now, they put you in the suite you're entitled to so they can see if they can sell the rest.

I don't know your dates - but there's little off-season at that hotel. Everyone wants to redeem there.