I recently booked a redemption night at the Sheraton Phoenix Crescent. Marriott deducted points from me. I called the hotel, wanting to ask if the lounge is open, hours, etc. Got a short message something like the Reception is busy, and quickly cut off. I then read on TripAdvisor some people got to the hotel and found it closed, and some others found their booking cancelled without any email/notice. I further confirmed that hotel is indeed closed.
Yap, Marriott should not have allowed people to book, and deduct points, if the hotel is closed. I've just cancelled my booking, and points were returned. Marriott needs to do better than this (not allow booking, and go cancel bookings already made with notice).