$400 a night for no heat or hot water
Due to hurricane Sandy we had to book a hotel for a few days, given the late notice most were booked so the ONE UN looked the best despite being over $400 per night. When we came to check in the next day, we were advised that they had no hot water, and we we could cancel if we wanted, but of course there were no other vacancies. We chose to stay for the first night whilst trying to find an actual hotel only to find there was also NO HEAT, for which the front desk was unapologetic. Not only that but tas it turns out hey have had no heat or hot water several days, yet have still been accepting reservations. 
This was clearly completely deliberate, as once we were at the hotel to check in we had lost any opportunity to book an alternate hotel. Aside from this, the hotel room itself was old and sparse, with no amenities as detailed, such as a minibar. On top of this our room smelt like a smoking den. 
Finally when we tried to cancel our remaining nights we were advised our travel booker had to call the reservations manager, despite the fact that their phone lines were down, to authorize a refund. Good sensible, flexible policy.