I do appreciate all the helpful input but feel I need to clarify a few things:
--Making use of my points is certainly my preference--not because we are unwilling to pay for any lodging with cash but because when I cancelled our 2020 trip to Europe due to Covid 19, all of our lodging for 5 weeks that had been booked with points (primarily Marriott and Ultimate Rewards) was easily cancelled in less than an hour. No hassle, no stress, no begging for refunds like so many others who told their stories online. Since travel in 2021 is still uncertain, I would rather not set myself up for a struggle for refunds either directly from hotels or from 3rd party booking agencies.
--Chase has available properties in Varenna, Menaggio, and many other locations so I have definitely not eliminated any of these destinations. I apologize if I gave the incorrect impression that there are no hotels, apartments, B&B's in these towns as there most certainly are and I said that I would look into these locations.
--The reality is that people unfamiliar with Chase Ultimate Rewards are often unaware of the numerous options that are included or with the flexibility it provides (at least when you spend a few more points to book refundable travel). That prompted my question about experience with the Chase system. We have often booked with Ultimate Rewards and it has been a great option for us. We do not feel that we are limiting ourselves.
My original question was in regard to II Perlo Panorama and Hotel Du Lac--both in Bellagio. I was merely trying to avoid confusion when I added that I was not asking about Hotel Du Lac in Varenna. Maybe I was the only one but I was originally confused about the two hotels. Hotel Du Lac in Varenna can actually be booked through Chase but is currently sold out for our dates. Having said that, inventory changes constantly and what was unavailable when I initially looked may open up at any time--or even be available right now-- or it is possible that our travel dates could change between now and May.
Thank you for being so considerate about issues related to my husband post-op foot status. I am very grateful for that and continue to learn from all of you as you graciously share your expertise.