Go up the chain of command (you'll have to dig), threaten with the BBB if in California (for some reason, they care about that one) and your intent to go negative on every type of social media out there if they don't deliver what was promised (hope you have a trail of the communication). They'll first offer you a minor credit toward another stay, but keep pushing. Most people give up, and they know it.

I asked why I could not simply be changed to a new hotel, and was given the excuse that it was already the next day, and if my hotel was changed, I would not be able to check in till 3 p.m. the next day. This however did not really make sense, because it was still before midnight in phoenix at the time. >>

well, it may make sense if the booking depends on the location of Hotwire, not the hotel in Phoenix, which is in Missouri and two time zones away. Who knows what kind of arrangements they have with hotels.

What kind of excuse did they give in the final email as to why they could not give you compensation? Did it just say we cannot give you compensation.

Good luck, this sounds all verbal and I bet you have no documentation of the conversation since it was all by phone, which is too bad.

There is a consumer advocate site called Elliot.org. There, you will be able to get the management contacts you need to email Hotwire, as well as advice on how to get a satisfactory response.

Link to the Hotwire contacts section at Elliot:

http://elliott.org/company-contacts/hotwire/