I'm really surprised by many of the responses in this thread. I think that pbiflyer had a very good case for a courtesy cancellation, and was treated rather poorly. It might be different if the hotel was sold out, but I doubt that was the case.

The point of courtesy is it goes much further in building customer loyalty than points and miles ever will.

And since Hampton refused to budge, I would certainly invoke the 100% Satisfaction Guarantee and not pay for the night you were forced to take. After all, they set the terms, and they refused to bend on them to make what sounds like a reasonable accomodation.

When you file your claim, I imagine that night manager will be told to take a little more initiative next time.