Urgent question...I really need advice regarding a dispute with Chase Free nights:

I used my 2 Chase free nights to book a room for 2 nights at the Presidente Resort in Cozumel about 2 weeks ago. All room types showed as available, so of course I booked the nicest one they had; the presidential suite. I made plans for another couple to join us (they bought airplane tickets) for a very nice 2 days in Cozumel.

Well today I got a call from IHG "Customer Care" saying that there was a "website glitch" and I couldn't have that room due to the Terms and Conditions listed for the Chase free night. They offered a very insincere apology and said they would do the following:

• Put me in a plain poolside room (the lowest type of room)
• give me back the 2 Chase free nights
• give me 100,000 points

I thought this offer was very low-ball considering I had already made plans around having the Presidential Suite. So I counter-offered:

• 2 rooms either junior suite or beach facing (one for each couple)
• give me back the 2 Chase free nights
• give me 100,000 points
• Bump me up to Spire Elite for a year

I thought this was more than reasonable (I probably should've asked for more, but I was at work and in a rush). The "Customer Care" rep asked a supervisor who said no to all of the above, and said their offer was final, take it or leave it. If I didn't take it, they would bill me $5000 per night for the Presidential Suite.

I told them I need 2 rooms (he admitted there were available rooms) and that his offer was not acceptable, and he needs to ask someone higher up. He did ask, and I got the same "take it or leave it" offer.

1. Can anyone PLEASE give me any advice on how to handle this?
2. Do I have any leverage, and if so what is it?
3. What should I ask for if anything?

Please help!!!

-mac