That sounds very much like the Leaking Boot - quite the s***tiest hotel I have ever stayed in - well actually I didn’t - I arrived late, paid about £20 cash to a shady looking guy on reception but took one look at the room and left without asking for my money back to find a decent B&B near the sea front.
A few years back I did a trek up Snowdon with some mates and the guy that arranged it booked us into a YMCA hostel afterwards. I was less than keen on the idea but was reassured they had private dormitories and he'd booked one just for us.
After we'd got back down and arrived at the hostel they had no idea about any private dormitories and we ended up in some godawful bunk room with a bunch of randoms that I hated at first sight. As we walked to the pub later me and one other guy (who was similarly appalled at the accommodation) were hanging back from the group and bemoaning our lot when we noticed a B&B with a vacancy sign, so with a nudge and a wink and not a word to anyone else we dodged in there and nabbed ourselves the last two rooms. It was a bit of a dump with a communal bathroom but it was like the Ritz compared to the other hell hole!!!
The other lot weren't impressed when we caught up with them at the pub and told them what we'd done but we were vindicated as later that night they were kept awake until all hours by the antics of the bellends they had to share the room with.