It might help to know the ages and genders of the three kids in evaluating whether any of the options offered by the hotel would have been reasonable.

However, I'd like to know what Hilton policy is for other situations when the rooms available do not fulfill the confirmed characteristics, such as a (particular type of) handicapped room or a room with two beds when colleagues, for example, are sharing the room. Is this treated as a walk? I recall a thread about a handicapped room not being available, but I don't know whether this was Hilton family or not. I also have the impression that bedding type is guaranteed for elites in some chains, but I'm not sure whether Hilton has a similar policy or what happens when the hotel doesn't offer a room with the confirmed number of beds. In some cases, a walk might not solve the problem when no other hotel in the area has a room available with the confirmed features. In other cases, a free upgrade to some sort of suite might solve the problem if the hotel is willing and able to do that.

Note here that I'm thinking about confirmed essential features, not just desirable features like high floor or rooms with a good view, although the view might be considered essential if that's the reason for the stay (for instance, a view of fireworks on NYE or July 4th) or a view of a parade, etc. To me, it would make sense for a hotel chain to have a uniform policy and enforcement for failure to provide rooms with such confirmed essential features.