Most confusing and complicated issue, because cancellation fees vary depending on a lot of factors. Some hotels do not have any kind  of  cancellation  fees  at  all,  some  hotels  have  a  combinations of cancellation fees. The non‐refundable booking cancellation fee the  most harsh type of hotel cancellation fee. It is applicable to prepaid  reservations. One night cancellation fee is a penalty for cancelled your hotel reservation.     

If you are booked your hotel directly from the hotel, most cases you  will be able to cancel hotel reservation before your arrival date and  will get back most of the amount you paid. It is easy case. But if you  booked hotel room as an advanced purchase then cancelling your  hotel reservation will not be easy because from the hotel point of  view you already received good rate