Oh. My. God. I can't believe that person is working in the hospitality industry.

I'm sure you'll get some great strategic answers as to how to deal with the response you received. Personally, I would cancel the contract and use another hotel. I'd also send letters of complaint to management at every level, including corporate executive. I'd include a description of the business they missed out on. So what if it's only 20 rooms - what about food and beverage? What about future business? What about lost referrals? I'd also let management know precisely why you chose another hotel, sending a copy of the e-mail along to illustrate. That sort of behavior is a major public relations nightmare, and I don't expect that person would have a job for very long. Maybe that sounds extreme, but your family's business should mean something.

Personally, I don't tolerate rudeness in any form. I try to treat everyone with kindness and respect. My philosophy: If I can take the time to be professional and polite, so can the people I deal with.