Since it wasn't previously stated, this thread is a continuation of a thread on the UA Forum:
http://www.flyertalk.com/forum/unite...l-penalty.html
To the OP, I agree with the others, that the hotel isn't obliged to credit your hotel night. This happened to me once at the SFO Hilton, and instead of asking them for a refund, I asked if they would credit me for the stay and associated points. They did, which I appreciated.