Talk about making something out of nothing. Nobody here, including myself, has suggested any legal action whatsoever against Marriott. I responded to somebody's suggestion as to legal action against S-8 and pointed out that the OP has no agreement with S-8. Suing somebody over a hotel reservation makes as much sense as performing unnecessary surgery on a patient. Not that there aren't physicians willing to do this or individuals willing to sue over anything. BUT, I deal with Marriott, not S-8. I have trust in Marriott to deal with situations like the above because my relationship is with Marriott, not S-8. In fact, knowing Marriott's excellent customer service-the best in the business as far as I'm concerned, I would guess that if the OP contacts the right person in Marriott customer service, a reasonable resolution will be offered.
Bottom line: the OP's reservation and relationship is with Marriott, not S-8. The OP stated that Marriott dropped the ball by failing to inform him of the reflagging (no matter who's behest the reflagging was at). At this juncture, if S-8 refuses to help, the ball is in Marriott's court. Sheesh.