Hotel Cancelled Stay 8 Days from Check-in

Booked a voco hotel in Asia as part of my trip. Hotel abruptly cancelled my stay 2.5 months later (8 days before planned check-in) claiming hotel is not ready. When I checked the app for same dates, the hotel was still being offered for reservations.

I am a Diamond Elite member for 4 years and support is saying they “refunded the points” I used for my booking.

I escalated this asking for arranging an alternative that would be deemed acceptable. They took the claim and never got back to me, so I had to continously follow up on the case.

Today for the 4th time, I received the response IHG client services cannot do anything for me and reiterated my points were returned.

This is extremely inconvenient as there are little to no IHG alternatives and the pricing / points tripled or quadrupled versus the time of my booking date.

What are my options in this case? How can I reasonably get a resolution that doesn’t put me at a disadvantage?