[punky]

The law says they have to provide equal or better accomodation. Equal in this respect is open to intrepretation, as all hotels are different, but equal is the same star rating, facilities and as close as possible to his original hotel.

It isn't really the tour op's fault, they took the money in good faith, and not much they can do with a smoking hotel with a large hole in it.

The T&Cs (standard) for your tour op & travel insurance will probably rule out recompense for your holiday, so its either take up the tour ops offer, or forfeit.

If there is a genuine reason why your friend doesn't like the hotel he is offered, mitigate that with the tour op (they aren't all ogres despite what some say), and they can try and find another. If he kicks up enough, he may get a small upgrade. However the law says the tour must offer a suitable alternative, doesn't mean to say the client has to take it. If your friend decides to take the tour op to court, and the judge rules the alternative was a suitable equal or better replacement, then your friend will lose out quite a lot.