Kavioka:
I agree with Silent Bob. I am not sure what you gripe is with Etihad Airlines (by the way, this is the Canadian Airlines subgroup. You should have toss this in Other Airline Complaint.)
Even if a carrier recommends a certain hotel, it can not be held accountable for the conditions of the hotel. The best that they can do is decide not to recommend the hotel again. The response letter indicates that there is a planned discussion about the hotels they promote. Who knows if that is true or just lip service, but that is really all they can do.
The carrier is not going to refund you the cost of the hotel room.
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