Will I still be charged a cancellation fee from a hotel if I’ve already paid for my night in full?

I booked a night at a hotel on booking.com and have already paid the reservation in full which is £153. I can’t make it anymore due to a family emergency. The booking.com email said that I will have to pay a cancellation fee of £153 paid if there is a no show or I cancel. Does that apply if I have already paid for the hotel? It seems strange to pay the full amount of the hotel as cancellation fees if I have already paid for it.