The crucial thing is to find out who actually did the cancellation - I got very angry with booking.com earlier this year when they cancelled a booking at short(ish) notice - but a bit of digging found that it was actually the hotel which had caused the cancellation.
Once you know who/why, then you can go after some redress - I think the important thing is "Could I have cancelled without being charged?".
If the answer to that is "Yes" then you'll get no compensation. If it would have cost you anything to cancel, then you have a decent case for claiming a similar amount from whoever caused the cancellation - but don't hold your breath.
As regards "what to do this weekend", I'd check the hotel's availability at regular intervals on trivago.com (they seem to aggregate all other sites) - it's very possible that the hotel will suddenly have a room free, if someone cancels or amends a booking.
Failing that, you have to look elsewhere - again I'd use trivago.com as they often find cheaper prices than booking.com.
Good Luck
Dave