I do not completely agree with George, I think you are somewhere in the middle. Your rright, if the policy states you are entitled then so be it the CO must agree to expend the funds accordingly or not send you. However, no where is it stated that each individual is entitled to a single room. CFTDTI's are written in the singular term and are intended to adress an individual proceeding on TD (as its name implies).
The policy for lodgings is meant to provide with commercial lodgings only if Military or Government accommodations are not available. Therefore not leaving you without any accomodation entitlement in the event SQ's were not available.
Aviator recommends you ask your CC and I am telling you just that as a CC myself. If you want to challenge the regulations then do so as ranting about them in an internet forum won't get you anything. Fact is you would and will get the very same answer I provided here and will only result in being perceived as someone who is attempting to bend the interpretation of the rules to suit your personal agenda as they are clear to everyone else out there (except maybe those by the pool).
Seriously though, all who seem to be confused by this entitlement should consider that SQ dorms are suitable accommodations for CF members, let alone a hotel room. You make the pick.
Not pointing anyone out, but hopefully the self-serving attitudes as displayed in this thread are not indicative of the general attitude throughout their service. Those who normally display these traits are all people I would not want to trust to cover my back with any type of weapon.