Main issue with this hotel is that the room rate advertised and charged is not the real rate. Unless you usually read all the fine print of the contract when you book and pay the non-refundable amount on your phone, you won't learn that you still owe for the room when you check in. You can refuse to pay the extra fee, but they already have the non-refundable amount so if you refuse, what are you going to do?
The final rate is still on the low side, but the property is definitely sub-par, approaching flea bag status. But what they are doing should be considered a scam, in my opinion.