The check-in time has NOTHING to do with the cancellation deadline! In LZ's case I am pretty much sure the specific hotel allows cancellation until 6PM same day of arrival. So in other words, the hotel did no extra favor to LZ other than simply honoring their own cancellation policy.
D*S
5 楼
Though it is often the case that hotels would allow penalty-free cancellation the way you mentioned, it is NOT the rule. Many would require your cancellation to happen at least 24 hrs beforehand, etc. All depend on the specific hotels.