Welcome to Flyertalk and welcome to the BA forum
flyer2025.
I did notice something very odd about this flight, since it was only cancelled after a very long wait, it's in the FAQ for reasons for delays, elsewhere in this forum. You will be able to claim EC261 from this event but the key thread in this area is this, which has further links.
https://www.flyertalk.com/forum/brit...5-edition.html
So thanks for clearing up what went wrong with the service.
And yes, it's quite standard to book your own hotel and reclaim. Personally I prefer this system, but I can imagine some people struggling with it. The theory is that those who can rebook themselves online should do so, to prevent a long queue to get to an agent, agents will rebook those considered vulnerable or with mobility restrictions. You should have been given either a white sheet with key information on it, or an A5 booklet, which gives a bit more details.
That said there was a substantial number of cancellations yesterday, thanks to the weather, so BA's ability to place thousands of hotel bookings when all the hotels are full is going to be constrained. You should also try to get rebooked via KLM or Lufthansa - you need to call BA to do this, but only if you have not accepted an alternative already.