Venues issues already

[wintermonster]

Booked a venue end of last year.

It's a venue at a hotel that we have stayed at before and loved it.

We would be needing quite a few groom for two nights for us and immediate family due to distance.

I reserved the rooms for my family this weekend and received an email back saying that they have been reserved but there are no other family rooms available.

This effectively means that OH's nieces and nephews won't be able to stay and therefore his brother who is his best man won't be able to stay.

We have our own little one and there's no rooms suitable for him either.

We have paid £1000 deposit but if we can't stay at the venue then it's not going to work for us.

I feel so deflated.

Has anyone got any ideas of what we could do?

If you cancel would you get your deposit back?
Did you have the option to reserve a block of rooms when you booked the wedding?

I would assume that deposits would be lost if we had to cancel because of this.

We weren't allowed to reserve a block, they told us that we could take a maximum number of rooms and when we book them they need full names, and payment up front (otherwise I would have booked a selection myself)