Thanks for your opinions everyone.
I did ask them to find me a comparable hotel but it took them almost a week to respond. When they did respond, the hotel staff said I could keep my reservation but that they could not guarantee me a room. They did indicate that they would find alternate arrangements for me if they could not give me a room.
Because of the uncertainty, and before they got back to me, I searched for and booked another boutique hotel just to have something in hand. I would actually prefer a large chain because service and cleanliness are generally more predictable.
In any case, I contacted the hotel this morning to see if they could offer any points for the inconvenience. They said no, but also indicated that I still had a confirmed reservation and they are working on availability.