Thank you very much for clarifying. First of all, I am sorry to hear about the issues you have experienced in your situation.
Your rights will depend on whether you have cancelled or the hotel has cancelled. If the hotel has made the decision to close or cancel your booking he you will be due a refund.
If you are the one making the decision to cancel, then you will only be able to do so if there was a cancellation clause allowing you to do so. No cancellation rights are mandatory and it is entirely possible for the hotel to make the booking conditions such that no cancellation is possible without a cancelation charge which depending on how soon before the date is made, could result in the loss of the full payment.
If you still wanted to cancel, that is where travel insurance would come in, if you had taken any and that is specifically what it is there for.
One potential get out clause you may have had is if it was impossible for you to travel, such as a local or national lockdown, preventing you from travelling. That is not the same as you deciding not to travel through your own choice because you are worried about the risks. You must be officially prevented from travelling, in which case you can argue that the contract has been ‘frustrated’ and you are due a refund.
I appreciate this may not be the answer you were hoping for but it is the legal position and all I can tell you is what the law says. I do hope that it at least explains where you stand and I will be happy to clarify anything for you in relation to it. For now, thank you for using our service.