I booked and paid for a room in tenerife for over new year (29th dec) back in june, staying at the Andorra apts room only and paid £350

I've been to tenerife a lot of times, so i knew the apts and location. There was other accommodation available cheaper, but i wanted the above complex.
Yesterday i received a letter from alpharooms, stating that they would like to bring to my attention the following information

'We have received notification that due to an unfortunate early closure at the accommodation, we can no longet fulfil the reservation, as originally booked'

I rang alpharooms who told me that they had been informed that the hotel was closing for christmas/new year.............strange
Because 3 weeks ago i was in tenerife and called in to look at the pool area, and i spoke to reception and asked could i have a pool view room, the lady said it was to early to request this, and gave me their e-mail address and to send a e-mail 5 days before i arrive and they will see what they can do.

I rang alpha rooms back and asked them to confirm when they'd found out that the hotel/apts were closing, they said about 3 days ago, which is why they sent a letter out to me.

I also contacted my friend who is also booked into these apts same date as me, although she booked with travelrepublic but at the beginning of august, and travelrepublic have confirmed that there booking is ok.

So i rang up the andorra apts and spoke to the lady who deals with bookings, and guess what the hotel isn't closing for christmas/new year as alpharooms said........
She also confirmed that alpharooms had in july booked 10 rooms for the hotel, even though they only had allocation for 5 rooms, so basically they have overbooked.

Now the letter did offer me alternative accommodation which they say is 2.5km away from my original booking, again i don't agree with this it's more like 5km away. If it had not been for the fact that we have 20 odd friends staying in the same area for a birthday party i would have taken this offered accommodation, as it is lovely, but a taxi would cost about 10 euros one way, andi can't afford to keep paying taxi fares for a week. i tell them i've rang up the hotel and spoke to trisha who deals with bookings and the hotel isn't shut and is open all through christmas and new year, and told them i knew about the 10 rooms they had booked..........and the fact that my friend who booked 8 weeks after us is still staying there. They went quiet and didn't know what to say.

Alpha rooms said they would ring me back, so i asked them could they explain why they had lied in there letter stating that the accommodation was closing earlier, they did ring back and they appologised for the lie, and said it had been an oversight when typing the letter.
I'm awaiting a call back from them, but not holding out much hope, and 2 weeks before due to going, there is nothing left, i spent 5 hours last night searching for accommodation in the area i want, and nothing it's all booked up.
I just wondered if anyone had any advice they could give me

thanks you