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The statement means that when the guest checks in, the hotel will require a credit card pre-authorization for the full amount of the expected charges. This pre-authorization serves as a guarantee that the hotel will be able to collect the payment after the guest's stay.

Once the guest has completed their stay and the final charges are settled, the hotel will process the actual payment for the stay. After the post-payment settlement is done, the initial credit card pre-authorization will be canceled, meaning the hold on the funds will be released, and the actual charge will be made for the correct amount.

In summary, the credit card pre-authorization is a temporary hold of funds to ensure that the hotel will be able to collect payment later, and it will be canceled after the actual payment is processed.