I am continuing to research this for my friend going to the Sheraton Waikiki. I found this in the T&Cs:
In the United States and Canada: When a Participating Property's Lounge is closed, or property does not have a Lounge or approved alternative, the property will offer a daily continental breakfast in the restaurant for the Member plus one (1) guest, or Member can choose 750 Points per night of Stay.
Unless I am misunderstanding, I think my friend may be relegated to crappy continental breakfast since the lounge is closed.
Can someone help me make an argument for otherwise?