Tried finding a 3.5* hotel in downtown Quebec between 7/1/12 and 7/4/12. Started at $70/night and worked up to $80/night with no luck. I think it's because it is Canada Day on July 1st or perhaps I was just underbidding for the 3.5* hotels in general. Ended up reserving a private room at a hostel for $80/night at the Auberge Internationale de Québec.