tldr: Luxury Escape refused to provide a refund even though the hotel is closed and the hotel is happy to issue a refund.
I am posting this as a PSA and to highlight their behaviour, it was really awful and I can't emphasise enough to steer clear of them.
I have a luxury escapes package in April, and I received an email from the hotel on Friday saying they will be closed from April to June and I can either change the dates with no charge or they are happy to refund via luxury escapes.
I then called Luxury Escapes today, and without even looking up my record (he didn't ask anything from me beyond that I told him I have a package next month and the hotel say they are closed during that time), insist regardless of what the hotel says, all bookings are non-refundable under any circumstances and the most I can get is a deferral of travel to that exact hotel at a later time, even though the hotel cancelled on me because they are closed during April.
Based on this I assume they have a blanket policy to never allow a refund in the current situation even if the hotel itself is closed, I am sure I will end up spending hours trying to claim back the money from my travel insurance.