Priceline states that a boutique hotel will offer a restaurant. I'd file a BBB complaint. The agreement with PL works both ways. You agree to accept a non-transferrable/non-cancellable hotel reservation. PL agrees to provide a hotel that meets their criteria for a given quality level.

Most rating services require a hotel restaurant for 3 and 4 star properties. I wouldn't count on this hotel meeting your friends expectations in other areas.

John--the price is irrelevant. If PL didn't have a qualified hotel then the bid should have been rejected.