Might be worth paying up to stay in Banff
I had the same issue maybe 5 years back (the Delta was officially still a Marriott but they literally had no award availability) while the Kanansakis looked nice but not close. Here's what we did, which I regret! We spent 5 nights in Calgary (to get 1 night free) at the Sheraton with the water slides for the kids (that part they liked along with the Calgary bobsled and other city attractions plus we did get a decent room upgrade) and then we commuted two days to Banff and then finally spent two nights at a mid-range Banff hotel, the Ptarmigan Inn. Yeah to stay in Banff you have to pay Westin/JW (not quite St Regis or RC) prices to get Courtyard quality but it's the location. Banff is a fun town. I'd recommend spending the money and staying in the town at an independent place via an OTA.