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Hotel says booking through Lowcostholidays has been cancelled

I would appreciate any insight into what our options may be from anybody more knowledgeable than me!

We booked a family holiday (flights, transfers and hotel) in January via Lowcostholidays.com. This was not a package holiday but separate contracts with each supplier, however Lowcostholidays confirmed that we qualify for "flight plus" protection, which I understand to be similar to that if a full Package holiday had been booked.

We checked with the hotel yesterday to confirm that they had received our request for a cot for the little one, to be told that the booking had been cancelled by a Spanish booking agent (Orizonia, which I have never heard of but now understand to be in administration.)

Lowcostholidays say they know nothing about this but have asked for further details from their "local agent."

Am I correct in thinking they are obliged to provide alternative accommodation?

Are we entitled to any choice of where/what this accommodation may be?

If not happy, are we entitled to request a full refund of all elements that we paid for initially?

Many thanks for any help!

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