LH First Class Downgraded - What to do?!

Hey everyone,

I’ll make this shirt but basically I had booked a LH First Class ticket from BLR (Bangalore) to EWR (Newark). This flight was First on both legs but due to aircraft change both were downgraded to Business.

Lufthansa offered me $1050 Compensation as only the first leg was downgraded, but now they downgraded both.

They told me another option where first class is available a day later, and it’s going to JFK.

So I have 2 questions:

If I accept the JFK flight will I be covered for a hotel by Lufthansa?

And if I accept that flight to JFK am I still entitled to compensation since my travel was delayed?

This will help me decide whether I should just take the compensation and take this same Business Route or take the first one the day later.

Especially since it’s an award booking not sure how the compensation works.

Very disappointing but would like to see if anyone had this experience.