I had reason to complain about a hotel in Lisbon a few years ago, booked through BA Holidays. I called the BA Duty Number, whom I informed I would be leaving the said hotel and finding my own place. They were absolutely wonderful, and refunded me fully for my hotel, as well as additional Avios as a gesture of goodwill on top.

Refund was sent by Bank Transfer within 3 days.

I'd have no hesitation doing the same if I was in your situation.