Yes, that headline is entirely literal.
A Spanish Pokémon championship team was booted out of a UK hotel after they decided to start hurling handfuls of their own excrement at each other.
The team was attending the Pokémon Video Game Championships in Birmingham. While a number of witnesses have confirmed that they witnessed the impromptu game of chodeball, the most detailed account comes from Pokémon World forum user, PokéChamp21:
After 30-40min in my room relaxing with a quick snooze I awoke to the sound of banging coming from down the hall from where the 'Spanish Team' were staying in. It seems that at some point after they had turned up and when we went to Wether Spoons [J.D Wetherspoon. A popular UK pub chain] the Spniards[sic] had decided to have a 'Poo' fight in the corridor and this had upset the staff and several guests (naturally) at the hotel enough to call the Police and have them leave.
While you might be quick to criticize the Spanish team (or make an obligatory "Spanish inquisition" joke), remember this event took place in a hotel in Birmingham. In 2010, Birmingham was voted the most-boring, and second-ugliest city in Europe. Having visited the city myself during my adventurous youth, I can confirm that spending the evening hurling your own faeces at a friend is a more stimulating, and possibly more hygienic, alternative to visiting any of the city's bars.