Edwina Currie faced backlash after slamming a Britannia-run hotel offering emergency accommodation for Whaley Bridge residents.
Hundreds of people have been evacuated from the Derbyshire town over fears a reservoir dam could rupture and flood their homes.
Water flowing into Toddbrook Reservoir was "reduced considerably" overnight but engineers remain "very concerned" about the integrity of the damaged 180-year-old structure, which contains around 1.3 million tonnes of water.
Last night, it was said that evacuees were moved to Buxton and given rooms at The Palace Hotel - which is owned by Britannia.
The hotel chain has 53 hotels across the country - including Pontins Southport and The Adelphi Hotel .
But despite the gesture Ms Currie, who lives in Whaley Bridge, slammed the hotel on Twitter and in a radio interview.
Yesterday, the former Conservative MP tweeted: "Looks like nobody’s having to stay overnight in Chapel High School - they’ve been sent to a nice hotel in Buxton! Nicer than our sofa, anyway..."
She clarified in a further tweet that she was referring to The Palace Hotel.
And during an interview today, she is said to have described the hotel as 'shabby' - earning a backlash from some listeners.
Karly Gray said: "It wasn’t very charitable of you on a telephone interview this morning to describe the Palace in Buxton as ‘shabby’ with a snigger, after they had offered accommodation to those having to evacuate their homes in Whaley Bridge. Really shocked."
And another wrote: "Now tell me again how calling the nearby hotel that saved my friends in the place I actually live 'shabby' in public is a decent thing to say?
"Much better than the other alternative. And yes, before you ask I offered our place and helped as best I could."
Ms Currie responded, saying: "If it goads Britannia Hotels into spending some money there, it'll be well said. The best thing about the Palace is its superb location."
She then linked to the hotel's TripAdvisor reviews, which rate it three out of five.
The ECHO has approached Britannia for comment.
