I stayed at the Jalousie in May of '02 and booked it at the end of May of '01 using a 150K points certificate (now 175k) and I didn't have a problem. I wonder if its the time of year you are shooting for. February is prime time and they may not want to give up a room for a HHonor stay.

BTW, if you book the stay get a helicopter to suttle you to the hotel the ride in a taxi is worse than any turbulance I've ever encountered flying.