A new Tapestry Collection in Rome, The Cosmopolita, accepted my points reservation back in March. Two rooms for two nights each in June. At the time their opening was schedule for June 6. I noticed last night the website says opening in July.
I reached out to the hotel and they said they will be pleased to host me as an independent hotel but cannot accept Hilton points.
I reached out to the Diamond email and the response said they cannot cancel reservations, per policy and to contact the hotel. It basically said "not our problem."

​​​​I have never had this happen before. I have a confirmed points reservation that will not be honored. If I wanted a run around, I could have used airbnb. I've had all sorts of issues with them. I figured I use Hilton all the time for work. What could go wrong?

Any suggestions or experience with similar issues?
Edit: Cash rate quoted is now 1020€ per room. So this is a 2000€ conundrum vs 280k pts. When I booked the cash rate was far less per night.