This isn’t the case. Typically BA will rebook you in a similar hotel in a similar property but often the budget is what they would be paying for the room. I was booked to go to Cancun and the hotel was closed at 2 weeks notice. We were offered an upgraded hotel another 60 miles away in the same hotel group. Selling price of new hotel was £1200 asked to go to different hotel in same group selling for £900 was told it wasn’t possible. Was told can cancel and get refund but with discounts would have only got something like £600 back. Asked how if it was the same area transfers were an extra £100 pp in the end BA offered complimentary transfers, double the compensation due and some Avios. Wasn’t the best holiday ... had moved from a 250 room property to a 5000 room one I needed the TO to get gold so ultimately glad I didn’t cancel. The main thing here is the OP has an outcome they are happy with.