Location, location, location! This is Santa Barbara people. SBA is devoid of any major chains except Fess Parker, this Hampton, a Holiday Inn Express, and a full service Holiday Inn. They do have Days Inn, Motel 6, and Best Western, but I don't count those because they're not places where points are usually used. There used to be a Radisson, but that changed to the Marmount a couple of years back.

Points opportunities in SBA are rare, especially in the spring and summer. Even the Holiday Inn Express fetches double the going rate (a whopping 20 k points per night).

I can't imagine paying 35k a night for the Hampton Inn out near the airport instead of 40k for the Fess Parkers in town, but to each his own. SBA is a lucrative location, and the hotels are notorious for jacking up the points there. It's not that the Hampton Inn is posh. It's just that it is located in a posh area.

Now, back on topic, the OP should contact Gold customer support and demand a supervisor. She has the proof of the original promised rate, and that should be enough. It's just like a mistake fare. When they happen, you're more likely to have success in getting it honored if you have the proof to back up your claim.