Lesson learned. Never check into a hotel with a debit card!!! Frustrating and inconvenient, yes... Nightmare, no.
The banks do not treat pre auths on a debit card the same as a credit card. While the hotel should have pre-authed the individual guests' cards, ultimately it is up to your bank to release the authorization. Even if a hotel reverses or voids the pre auth today, it can take 3-15 business days for the bank to release it.