A few weeks ago, I booked an award stay for 2 nights at the just-opened Hampton Inn in Goleta, CA next month. The reservations agent quoted me 20K per night, which sounded right since I remembered most Hampton Inns fall in that range. I received my reservation confirmation e-mail, which confirmed the Category 2 reward and a Total Rate of 40K points. I also received the C202 certificate to be handed over upon arrival.

This morning, when I checked my reservation, the website now describes the Hampton Inn as a Category 5 and my stay is booked under code C502 at a cost of 70K points. When I called HHonors, after a very long hold, the agent said that the booking was made in error and that the hotel "was never a Category 2." She said she could book the hotel for 70K points, but I do not have enough points. She could book a regular reservation, but the hotel is sold out. She twice said she had to cancel my C202 certificate because "there's no way the hotel will be able to honor that rate," but I practically begged her not to change anything until I could escalate the matter.

Any suggestions on how to best proceed?