Yes, if a hotel cancels your booking, you are legally entitled to a full refund of any deposit or prepaid amount, as the hotel has failed to fulfill its part of the contract. In the UK and EU, consumer protection laws (and "Force Majeure" clauses) generally mandate that the hotel must either provide a full refund or offer equivalent alternative accommodation at no extra cost to you. If the hotel is at fault—for example, due to overbooking—they are often liable to pay for your "reasonable" expenses if the new room they find you is more expensive. In the US, while specific state laws vary, the general rule of "breach of contract" applies: you cannot be charged for a service not rendered. Many hotels may try to offer you a "future stay credit" or a voucher instead of cash, but you are not obligated to accept these; you have the right to insist on a direct refund to your original payment method. Always keep your confirmation email and a record of the cancellation notice as evidence.