It's probably legal.
If the reason was your race, religion, gender, etc., then it would be illegal.
But if they would have told you to wait a day anyway, and the reason they ultimately refused service was becaus you wouldn't wait, that's legal.
Businesses have the right to refuse service -- unless it is for an illegal reason.
If the reservation was an enforceable contract, then you might be able to sue for breach of contract. However, at this point, I think you'd just be entitled to damages for the one day delay, not for the permanent refusal, because that was your fault for saying you wouldn't leave.