It appears that Trip Cancellation coverage could apply:
You or Your Traveling Companion’s lodging accommodations at the destination of the Trip being made uninhabitable, BUT
Eligible Travel Expenses does not include Event Tickets or prepaid fees to theme parks, museums, golf courses, or other points of interest.
https://www.chasebenefits.com/sapphirereserve2
Here is the problem - the location is not exactly uninhabitable. Instead, it is re-purposed for quarantine purpose. Beside - to prove this, you need the hotel to issue something in writing, which the hotel will not admit it is uninhabitable.