There is no law that says that the club has to do anything. They can argue that the cost of the one night's stay was $0, so that's all they need to pay. However, in fairness I would argue that whether the should pay as a point of fairness depends on the circumstance: if the event that the members were attending required only one night stay, then no - the club should not reimburse for something that cost the 16 people nothing. But if the event required 2 or more nights, then the club should reimburse for one of those additional nights.
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