Marqués Oaxaca - Hotel

I booked to stay at Posada de Marques through Hostelworld, which was immediately confirmed. As this was the time of Dia de los Muertos, one of the busiest and most expensive times to book a hotel in Oaxaca, I booked more than 7 weeks in advance. 2 weeks later, I received an email from them that there was no availability for that time. They said that they would help me book into another nearby hotel called Hotel America. This hotel has considerably worse reviews and doesn't even have hot water (temperature at night gets down to 11°C). My booking was for $37 per night. At that point there was nothing available for less than $50. I replied to their email demanding that they honor my confirmed booking but they did not reply. I later emailed requesting a refund but they did not reply to that either. I would not recommend staying in a place that does not honor their bookings and does not reply to emails.