Thanks all. And thanks for the feedback on not being clear. Let me try to explain again. Posters in the last few posts potentially misunderstood the situation.
I had two seperate reservations. A standard room and a suite. (Paid rate, no upgrade).
I checked in the reservation of the standard room and received the standard room. This was the last available room.
I was refused the check in of 2nd reservation, the suite room. I was not provided a standard room instead, which would have been a room type guarantee. I was completely refused checkin on a confirmed booking. This should be URG not room type guarantee.
The hotel was asked to walk us, pay an alternative property and transportation. They refused. They were asked for compensation, but had no clue and did not comply. They said we can both stay in the same room and if we leave, then they will charge the standard room anyway. We did that, and shared the room, which was the key mistake. We should have split up and forced the walk per the rules.
I hope this clears it up.
I also note that many feel I should just drop it. Maybe I will do that. I just don't like how hotel and Marriott can both get away with breaking their own rules so easily. It's a matter of principle. Based on the value given above for 50k points received, the hotel owes another 600 USD or so. Seems wrong to let them get away with this savings (by breaking rules).
I made a call today and a supervisor escalated. It should take about another week now.
I let you know and thanks for all advice.