It depends somewhat on what region of the world you are in and what would be considered a "normal" level of expected service in such an area. But I'd start with "you didn't provide the facilities that we signed up for and we are not paying for the accommodations; may I speak to a manager about having the charges reduced?" and see where you get from there. Go into the discussion with a expected level of discount that you're willing to accept and negotiate to that. Worst case you can try a dispute with the CC but that is probably iffy.

I also probably wouldn't have waited around for day 2 to see if they got things right eventually unless there were no other options but that is a different issue.