My boyfriend and I stayed in a hotel for about 9 days while seeing his mom (we booked it with a temp card). We ended up cancelling our stay early because his mom said we could go stay with her. My boyfriend was supposed to get his permanent card in the mail within the few days we stayed, but it didn't arrive until after we cancelled. Can the hotel hold our belongings for collateral? They also said the cancellation fee was $300 for cancelling 3 days ahead.
The cancellation fee would have to be in their terms and conditions, otherwise they're pulling a number from thin air. Demand to see a written document which you previously signed (on check-in usually) which would indicate these terms. They can't make up terms as you go.
If you agreed to something in the terms, however, then yes, that's the agreement you made.
However, if none of these events were agreed to, then them holding onto your belongings without your permission could be considered theft.
Be firm, polite and request to discuss the terms in relation to signed documents/terms and conditions.