I recently booked a trip to New York to visit family for New Years. I included a hotel stay in my package. I am now planning on staying with a family friend therefore no longer need the hotel reservation. I looked at the site I booked with and the only way to do so is if you cancel the whole package which I dont want to do. Also, it says the hotel reservation is nonrefundable.

If you booked through almost any travel website except the hotels website you are out of luck. Expedia, Priceline, orbit, etc. all of the travel websites are like a travel agent. You pay them, they pay the hotel. You could try to call them but Im sure they will tell you no based on the fact it is non-refundable. When you book through any of these companies you will get a standard room type which means anything that is leftover. No preference on smoking or non or how many beds. Always try to stay away from these methods of booking rooms because you may get a better rate but you might not get what you expected.