Interpretation of no show, no refund condition
Ybe
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If you make a non refundable booking with a small hotel and they ask whether you are still coming. If you then reply no, can they treat that as a no show and cancel your booking before the date of your arrival? If their terms and conditions also state that a no show will be charged at full value.
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If you told them you weren't going I'm not sure what else you expected?
However - it also appears you may have "cancelled" with that response. Any magistrate/judge would "on balance of probabilities" (civil case) likely agree surely?
At that point, i think as "non-refundable" (rather than "deposit"), they are entitled to claim the money AND rebook your room to someone else without refunding you partially? If it was a deposit, they could take the deposit, but then if rebooking the room, could only reasonably charge you their costs. But others here can confirm (I suspect the T&C of booking would be important).
Debt free - finally finished paying off £20k + Interest.
They can retain from a prepayment, or charge you, for either their costs or their loss of profit but not both.
For loss of profit they can not gain from a windfall, this means they can not take your full payment and then let the room to someone else resulting in double payment.
As with any claims each party must mitigate (lessen) their losses so the hotel must make an effort to secure a new booking.
Given the period I would assume they are likely to be able to rebook the room and were the hotel full, other than minor admin, you should be refunded / not charged.
CMA guidance below on unfair terms with regards to prepayments and charges in the event the consumer breaches the contract are detailed in this document.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/450440/Unfair_Terms_Main_Guidance.pdf
5.15 through to 5.17 cover this topic
You say they take full payment if you don't show which, given the majority of the price will be profit, is fair enough (you could argue on a bit of electric or whatnot but the amounts are tiny, things like room cleaning won't be per room, they have to pay the cleaners to be there each day, etc, etc).
However you are not a no show, you are breaching the contract by cancelling in advance giving them time to assess as per the above.
The hotel wouldn't be treating it as a 'no show', they would be treating it as a cancellation as the OP informed them they would not be coming. As the booking was non-refundable it is actually pretty irrelevant whether they actually listed it as no-show or cancellation. Either way the OP won't be getting any money back.
That however doesn't mean you get a refund.
Its all about mitigating losses which in law the trader or whoever, is required to do.
In this case a hotel has more than one room so if the hotel was fully booked, including rebooking your room them a refund is due.
If they still have rooms then they can fill those first so its all about the availability.
You could try booking a room on the day you were due to stay and if they say they are fully booked then you are due a refund.