Virgin have extended their partnership with hotel booking site Kaligo. In addition to earning miles on hotel bookings through Kaligo you can now spend your flying club miles. Rooms cost a set amount depending on their category, either 20,000, 30,000, or 40,000 miles per night. I don't think this offers a particularly good return on your miles but you may feel differently and if you are struggling to spend them on flights this gives you another option.

More details in my blog post here.
http://milesvirgin.com/?p=381

Or search for hotels and how many points you need here. https://www.kaligo.com/#/flyingclub-spend