Of course, and in normal circumstances that would be true. But, the contract assumes that the owner can deliver the product being sold, and that is the room.
The owner sold a room. If they can’t deliver the room, then they are in breach. A contract needs an offer and a consideration. If that consideration isn’t given, or can’t be, it null and voids the contract.
It would be like ordering a pizza and when you go to pick it up, they say, well, our oven is broken so we can’t give it to you, but because it was a non refundable special, we get to keep your money.