For the upgrade? Probably not. In the hospitality industry it is custom that if you have an issue like this, the hotel will offer something similar or better without a cost. If it is a downgrade, they compensate.
Like when you have a business class ticket and business class is overbooked they usually offer business class on a later flight or economy on the same flight with compensation.
If Sequoia fully closes (again, seriously, it was closed for the entire pandemic), I assume they will first move to NPB and maybe Marvel.
But I also assume that this might only happen to a couple of guests. It is unlikely they will still take reservations when they know the hotel is going to close for refurbishment at date X. Maybe there is a small difference, that they take reservations up to the 1st of March and due to unforeseen circumstances they will close a bit earlier for preparations (no idea, just guessing what could happen). But that might be days or weeks, not months. So they guests they might have to move will be limited.