Reminds me of an Inquiry dialogue that went something like this.
Q: I'll be arriving at 7 AM, can I check in then?
A: The earliest check-in time I can offer is 2 PM.
Q: OK, but can I just drop off my bags and get the keys?
A: That is what checking-in is.
@Kristi96 It's up to you to decide if that extra night's booking fee is sufficient compensation for getting up at 5:30 AM. If your aim is to get the best reviews/ratings, it helps to be aware that guests who are the most difficult and needy in the booking process are the least likely to give you a 5-star review. It's often the case that the guest's needs would be better served by a hotel with 24-hour desk service, and this one is no exception.