Checked into the Doubletree Santa Monica in the spring of '99. They were going through massive, unadvertised renovations. Charged us the full rack rate regardless, kept up a hammer-and-saw symphony from 6am each morning, lobby thick with drywall dust and reverberating from circular saws, hot water turned off for hours at a time, room mysteriously stripped of TV remotes, clock radio, etc. (but that was OK because the hammering man outside woke me up)... the worst. The manager was out of town at the time. I remember the checkout line was like something from Fawlty Towers -- this mob of paunchy, aggrieved men in sport shirts spewing complaints at bewildered non-Anglophone staff. I wrote a scathing letter, copied it to Promus, the parent corporation, and got the whole stay comped. But I never went back.
Another real prizewinner is the Hyatt in New Brunswick, NJ. Their real business is hosting local functions (weddings, etc.) which take up all the on-site parking, and if you arrive late you have to park in a municipal garage three blocks away and hike back to the hotel with your suitcase in the rain and darkness. I only stayed there for the BA bonus miles.