The Championship play-off final defeat courtesy of Ricardo Vaz Te's late winner denied the Seasiders an instant return to the Premier League.
Thomas Ince's second-half equaliser had put Blackpool back on level terms after Carlton Cole's first-half goal but ultimately the Hammers were more clinical on the big occasion.
And Holloway was magnanimous in the wake of desperate disappointment, telling Sky Sports: "Well done to West Ham. It looked like it was going to extra-time, I was very pleased with our performance overall.
"I think when they scored we lost it a little bit, lost our shape, lost our belief and I asked them to do certain things at half-time.
"Like my lot, they went out there second half, fantastic performance, and we'll be ruing the day we missed a couple of chances, but that's life.
"Good luck to them. I'm very proud of my players, very proud of my team and my fans. Unfortunately we didn't deliver."