Unlikely that there are no rooms available but there could be yield manage restrictions in place that require a certain length of stay or don't permit arrivals on certain nights (Saturdays before Christmas can be hard to find for arrival). What are your dates?

Also, the Palace is not really a luxury hotel - they do a lot of group business and the rooms are not deluxe, service not top notch. It's not a dump, but it's not luxury either.