If a hotel sells you a “non refundable” rate, but then closes to occupancy before you either decide to go or not, you are simply owed a refund. I realize this is not popular with innkeepers struggling to survive, but that is why opening a business has great risks and correspondingly great rewards. The reservation is not a contract that applies only to the consumer; the lodging has a duty to perform their side of the bargain, and OTAs like Hotels.com need to enforce this for their clients, no questions, or they are liable as well. I will be suing hotels.com on this shortly.

it is different if you cancel, instead of the hotel. But where the hotel announces in advance that they are CLoSED so don’t come, you have been scammed and your agent, who sold you the product, is jointly and severally liable. They need to make all this class of cases right, or standby for endless litigation, as well as loss of consumer trust in their brand and business impairment for good.