I booked a hotel through one of the reputable online companies but the hotel is full.?

The day after I booked, and paid in full, I contacted the hotel with a room request and was told there was no room for me and the company had been made aware of this. I immediately contacted the company and around 16 communications later they still can't provide me with confirmation although they are still,... show more The day after I booked, and paid in full, I contacted the hotel with a room request and was told there was no room for me and the company had been made aware of this. I immediately contacted the company and around 16 communications later they still can't provide me with confirmation although they are still, loosely, suggesting the booking is good. They have offered me my money back or a 5% discount if I book another hotel with them. However 5 weeks have passed and the other hotels are getting booked up and going up in price. Where do i stand? Should they offer me alternative, similar accommodation at the same price? Sorry to go on but I thought as much detail as possible is best.

Thanks in advance, Tim
Update: Thanks Airpole. They have now admitted the hotel is over booked and offered me a 10% reduction on any other hotels on their site. All hotels are now more expensive than when we booked so even with 10% off we'll still be out of pocket. As per your suggestion I have stated we expect same or better with no extra... show more Thanks Airpole. They have now admitted the hotel is over booked and offered me a 10% reduction on any other hotels on their site. All hotels are now more expensive than when we booked so even with 10% off we'll still be out of pocket. As per your suggestion I have stated we expect same or better with no extra cost. Will update on the outcome. Any further advice greatly appreciated. Cheers, Tim
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