Weather issues major airports, you can guarantee someone is going to be put out, you just got to hope it isnt you.

Not clear what the time period was between booking being taken, and the cancellation call, but as others have said I would have gone to the hotel and discussed it (politely with the manager)
Quite possibly an airline had activated a bulk block and they had bookings clash, but you're much harder to turn away when at the hotel in person.

Worst case you could have pushed for a bunk bed in the hotel gym or something..