On the Beach hotel only cancellation

SummerDays

I wondered if anyone else had any experience of cancelling hotel only with On the Beach (OTB)?

We are due to travel in just over a month, and are not keen to travel this year. I have clicked into the 'manage my booking' element and it would appear that the only cancellation charge is the OTB fee of £30 per person. There is no hotel cancellation charge, and in our booking conditions with them they state that "outside of 7 days prior to arrival will incur no cancellation charge". Hotel was fully paid at time of booking at a cost of around £2,000. Cancellation would be £120.00, so refund would be £1,880. This is all detailed on the cancellation screen with the refund due clearly stated at the bottom. 

It seems unusual, but wonder if it is just fortunate for us with the accommodation we booked. Any shared similar experience would be good to hear.

Thank you in advance.