Canceling your hotel room automatically cancels your wristband purchase(s). Canceling your wristband purchases automatically cancels your hotel room. No hotel room = no wristband. And vice versa.
Local Music Fans may cancel a hotel reservation without affecting their wristband purchase.
If you are within 28 days of your check in date SXSW charges a $50 penalty. Some hotels also charge a cancellation fee within 7-14 days of your check-in. These penalties are outlined in your reservation approval confirmation.