Gone are the days when hotel reservations could be cancelled on the day of expected arrival. Nowadays, hotels require at least anywhere from a 24- to 72-hours otherwise a lasy minute penalty fee will be incurred.  
According to the hotel chains, which have made news as of late for increasing that amount of notice required, a 24-hour policy left them with a significant number of unsold rooms due to last-minute cancellations. They say increasing that amount of time allows them to better manage inventory; and increases the availability of rooms in global locations like New York City in the US, where occupancy is high and rooms can be scarce. 
Another likely reason is to boost revenue. Hotel fees in the U.S. have generated a record $2.93 billion in 2018, as companies try to combat increasing payroll and real estate costs. 
Each hotel brand, and sometimes each hotel, has different policies, and it can also depend on whether the property is a hotel or resort. Hotel nights booked with rewards points often have different cancellation policies.  
As business travel can be upended unexpectedly, many corporate travel managers have said they believe the new policy would push their travelers to take their business elsewhere. Leisure agents, meanwhile, have working relationships with on-duty managers or general managers who may be able to negotiate clients out of cancellation fees.  
To  avoid any inconvenience to all parties , it is recommended that clients inform the Host at least 3 days minimum of any cancellation