Originally Posted by NWIFlyer

Under EC261, you're entitled to a certain amount here, although you will have to show that you acted reasonably - which is what's behind BA's recommended hotel cost limit of £200 (not $), which they will pay without quibble. Beyond that, they'd expect you to show some evidence that you took the cheapest reasonable option, as would any court if the claim ever got that far.

Now I can see on the IHG website that there's an Intercontinental hotel in central London available for less than $750 - at the O2, for £565. There's even a hotel 20 miles from Heathrow for £174, within BA's guideline amount. The Holiday Inn at Reading was close to the budget. So, you might expect some pushback when you try and claim $750.