Generally I feel if the points offered cover a free night at the property then under the circumstances is probably fair. It seems the hotel maintained a contract with a company to look after the alarm and a fault was not rectified that occured over night. They have taken action against this to make sure it doesn't happen again. The fact you have so many nights at this property and it is not something that you have experienced before indicates it is not something the property has suffered previously and thus little blame can be put on them.