Upvote:1
I have worked as Receptionist in small hotel located in city which basically get all of its tourist for 2 weeks and then barely any activity. What you have described is standard way of procedure, minus the seeking consent before charging. The hotel I worked called/emailed all the people who signed up and only if they confirm, proceed with the charges.
Obviously the legality of what you faced depends on jurisdiction and what you signed.
I thought it was just to give people who stayed there the year before priority.
I would suggest thinking over the fact why a hotel would give out priorities during the peak season.