[AirlinesMustPay]

I didn't see the OP say anything about a refund offered. The CSR told him to call back and he may get a date change without a fee, but no promises. Then he was offered the earlier date, but with having to overnight before his connection and no hotel.

This is international travel which falls under the Warsaw/Montreal convention. But even if a refund had been offered, he could choose to proceed with the earlier flight so as to make his connection. In such a case the OP is not entitled to any upgrade, but the airline has to compensate him for any damages suffered as a result of their change in flights, and there is absolutely no defence for them to such a claim. If I was the OP, I would just proceed to pay for my hotel and then later claim against the airline all additional expenses such as hotel/taxis/meals.