I can sympathize. I can't imagine what I would do if my $100 cole haans, $60 Bostonians, $120 travel pro (crew!) or my $40 Swiss gear backpack got ruined. There would be HELL to pay. I would consider them lucky I didn't have my $150 SP (samsonite PRO).
I would simply clean, repair and replace everything then submit receipts. The hotel's insurance will cover your losses.
Compensation should be a no brainer as far as the room is concerned.