Virgin Holidays offer

[Mel5678]

I have found out from other sources that the hotel I was planning to stay at booked through virgin holidays as part of a package will be closed until 15 June. I am due to travel last week of May. Virgin holidays have not informed me that it will be closed. When I try to book a holiday for the same dates only 3 hotels show, two are really expensive and the other is not of the same category as what I paid for I am wondering whether virgin holidays will cancel my holiday and give a full refund or offer me the lesser priced hotel? I don’t particularly want to accept a voucher as I am not sure when I would be able to go (holiday is in the Caribbean).