I have a 1 night reward stay booked for a few days at an airport Moxy in Europe.

Booked only on points.

the hotel just proactively emailed me to say: “We would like to inform you about the corresponding cancellation policy and No Show fees.

A free cancellation of your reservation is possible free of charge until 1 day prior to arrival.

A later cancellation or No Show will be charged with the current best available daily rate of EUR 264,00.”

I am surprised an award stay would attract a no show rate of €264 (I assume in addition to keeping the points).

I am planning to stay but was just wondering if this is permitted and the norm?