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I don't think it's unreasonable to decline the accommodation if you don't think it's suitable. I wouldn't make a big stink about it, but if I were in your friend's shoes I'd understand.
Getting married overseas was popular here for a while. I know a few people who planned weddings in Bali and in one case, Europe. I can see the appeal, but that's a lot to ask from your friends and family.
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