Sounds as if the rooms were part of the deal - they were obliged to book - and pay for - a certain number. I’ve known this before for a family wedding, but it was very convenient for us and not too expensive. Not that that makes it acceptable in your case.
If you’ve got much better uses for that sort of cash, then personally I wouldn’t feel at all bad about declining with thanks, and just sending a card - maybe with a modest cheque.
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