Cheap is as cheap does

Rewind two weeks ago.  Finally got around to booking accommodation for the last week of my trip.  Left it a little late, but still got the place I wanted.  Private room with a bathroom, cheap, clean, right in town.  Ticked all the right boxes.

Fast forward to last night.  I receive an email from the hotel: "We have a problem with your reservation, because the night of 2 March we don’t have space…".  That's the complete email.  No mention of other nights' availability and if so am I'm booked in.

Turns out there is some big festival in town, and the owner of the hotel cleared the books for his family and friends to have a place to stay - just for that night though.  I still held a reservation for the other four nights - split evenly before and after the off night.  Nice friend, terrible hotel manager.  Not much I can do though.  Spoke with the guy who emailed me (not the owner).  He was very apologetic and said the owner had just told him that day.  Unlikely story, but I have no recourse.  I ask him to find me an alternative and I also start looking.

Can't find anything under $100 for that one night, and nothing for 5 straight nights.  Figure I'll settle everything once in town.

The trip from Puerto Veijo was uneventful.  I chose a shuttle company over public transit as it would save me 5-6 hours traveling time,  transfer issues, and leaving at 9:30am instead of 6:30am.  The extra cost was well worth it.  Overcast day with a few sprinkles.  Ideal weather because it kept the heat down.  Air conditioning in the shuttle van too just in case.  It was used in the first part of the trip, but got much cooler once into higher elevation.

Got to the town of La Fortuna just after 3:00, and checked into the hotel.  The front desk guy was the same person I spoke to the night before, so he was trying extra hard to help.  He said there was a hostel a block away that had space in the dorm.  Told him I'd check it out after I put my belongings in my room.

Walked over to inquire.  They were booked.  Went back, the desk guy called a few places with no luck.  "I've got one option, that I wouldn't charge you for..."  Interesting.  This guy has no idea how cheap I am.  As I tell all my friends, 'be careful what you offer. I'll likely say yes.'

The free option is the laundry room (housekeeping use only, not for guests).  Huge open room with a bathroom & shower.  Also has an alcove where they store extra mattresses.  He would have housekeeping set up a bed in the alcove.  Certainly not ideal, but what else is there to do?  Told him I'll keep looking for other options, but I may just accept his offer.  

What would you do?