What happens if the host cancels my reservation through Booking.com?
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This isn't by far a canonical answer, but yet it can be useful to someone else.
The host informed me that he couldn't host me anymore. I was already preparing for a cancelation, yet I informed him that that wouldn't be possible and asked for viable alternatives. Against all my expectations he answered back that he would keep my reservation and he didn't cancel.
My advice, given this scenario, is: don't cancel immediately, otherwise the burden to find a new place is all on you. This can become a nightmare if it's short term to travel and everything is booked.
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