Professional,
If you payed with a credit card simply deny all charges via a call to your CC bank. There's no reason to settle for a partial or portion refund at check-in, your entry payment included comped lodging according to your posts. When the event was canceled the lodging cost charged should also be canceled and refunded.
If you buy a shirt from Macy's online and it's out of stock and the order canceled, you'd certainly bitch about paying shipping costs for the non-shipped shirt.
Your payment included the complete package (tournament entry and lodging), why would you settle for a partial (portion) refund and a semi-sincere apology?