This is done so the hotelier can reconcile the money coming into their account sooner, rather than later.

These prepayments have a credit note attached to them for the amount of the payments. The credit amount is then applied to the guest invoice on checkout - please do not create any adjustments on the Prepayment in Xero, or else you'll receive errors on checkout.

This is done partly because the guest has already arrived, so it’s not a deposit (prepayment). 

The payment is created on checkout, and automatically applied to the Invoice.