Plenty of discussion on this policy elsewhere -
Outrageous No-Show Fee Incurred At St. Regis Aspen
SPG used to allow you to substitute points for the cash cancellation fee, but Marriott discontinued that practice. I believe a number of other chains also have the same policy.
Originally Posted by
Kacee
This seems a particularly egregious example; usually cancel fee is one night's stay - I might check with the hotel whether they would charge one night or five nights.
That would apply if the cancellation policy was the standard flexible terms. However, if the Best Available Rate is non-refundable either at the time of booking or at a certain number of days before check-in (which is usually during peak season/special event), then the cash cancellation fee for the points booking will usually be the entire stay.