In any decent hotel, regardless of status, if my confirmed room type isn't available I would expect the hotel to upgrade me to a better room category or, if my confirmed rooms type isn't available, to offer a significant apology gesture in addition to a refund of the difference in room rate based either on the rate plans applicable at check in or the rate plan I booked, whichever favors me. When I reserve a room type, this isn't just an option for the hotel to later decide whether to give me that room category or not.