I've had this happen at least twice in the past three months.

#1: Fairfield Inn in Orlando. Made my reservation on a Wednesday for Friday arrival. Landed in Orlando and saw I was moved to a totally different hotel. I thought I was "walked". No email, absolutely nothing from anyone. Both properties next door to each other. I wound up staying at the sister SpringHill and the reservation was moved over without issue. The rate I was paying was cheaper than if I booked the SpringHill directly. Didn't ask for "walk" compensation.

#2: Fairfield Inn in San Diego. Made my reservation on Thursday for a Friday arrival. Took Uber to the hotel to find someone sitting outside looking at me oddly. He asked what I was doing there. I said I'm a guest. He said no you're not - the hotel is closed. Huh? Then he goes inside and finds someone to come and talk to me. My reservation was transferred to a Courtyard "down the block". I had to walk probably longer than the 500m the OP had to walk. Reservation was waiting for me. Again, rate I paid was cheaper than if I booked that hotel directly. Again, I didn't ask for "walk" compensation.

I doubt I would have received anything in both cases. I wasn't that inconvenienced in either case. Sure, it's odd to rock up to a hotel to find it's closed but if they aren't making me go far I don't really care. I just don't get how a hotel can accept a reservation the day before arrival if the hotel has been closed for two weeks already and isn't re-opening anytime soon.

-RM