Why Can't I Receive A Refund For A Room I Didn't Stay In?

I'm sending a similar complaint to corporate HQ. We registered at the Days Inn in Natchez, Mississippi on 3/9/13, only to find that, just outside our room, there was a pickup truck around which several young men were gathered, barbequeing and drinking to appropriate music.The door to their room was open, and revealed a trashed mess, and a man in bed, sleeping/stoned/?dead. Our room, directly next door, stank of something... feces? Rotten food? When I asked for my money back, "corporate policy of no refunds" was explained to me, and I was offered an "upgraded room." My question: why in God's name would I and my wife stay anywhere near that situation? The room clerk had assured me that there were no other rooms available before I insisted she call her supervisor. Beyond that, the damned place looked near-deserted to begin with. We drove a block up the street and stayed at an Indian Mom and Pop motel, which was clean, smelled fine, and we were treated graciously... as I would expect in Natchez. American Express was not able to intercede for me here, noting the "different room" option. Not only would I not take a different room, I'll not stay at another Day's Inn unless this can be rectified. John B. Crane, MD