This is how the hotel industry works. This isn't just a booking or expedia thing. If the hotel knows they're gonna sell the house they'll shit-can "cheap" reservations that were made a long time ago. Even if Booking.com or whatever middleman online travel agency you're using doesn't facilitate this, the hotel itself will do it.

Every time there's a big event somewhere a bunch of people who booked before the event was publicized get bit by this.