I recently completed a 2-night stay booked fully on points. I was charged a $20/night Urban Destination Charge. I followed-up with the hotel to try to get this refunded (referencing the terms stating that Resort Fees are not charged on points redemptions); however, they are insisting that this is a mandatory charge (even on points stays). Is this correct?

I have searched the forum but haven't seen any definitive statements. Has anyone run into this?