It is poorly worded and can be corrected by adding "less than" (assuming it isn't a situation with a graduated penalty which of course should have a longer explanation):

"Hotel cancellations or changes made less than 72 hour/s prior to check-in (noon local hotel time) will be subject to a fee of 1 night/s"

However the intent seems clear and the literal reading is nonsensical. So I wouldn't worry about a literal application per the original wording.