So for example if the population is seven thousand and all they have is a burger/taco place, a mom and pop steakhouse and maybe a chain hotel, it may be hard to find a buyer. 

There is a reason high value hotels constantly invest in upgrades and redesign, as well as high quality furnishings that can take the wear and tear of high volume usage. 

New Orleans residents feel that AirBNB's have ruined the neighborhoods and character of living in New Orleans, making housing unaffordable for musicians and service industry workers and that the city has plenty of hotels for tourists to stay in.Adding units may be very easy or next to impossible depending on the zoning and neighborhood where the house is located.

Virgin Hotel.

DSCR will likely be very hard on a property like this considering the hotel-type nature (the info mentioned in #2 with the business website, online booking capability, etc.). 

Potential returns look decent …PS- the jump you saw could be some sort of hotel/ multi unit property coming online.

This room is usedsolely as a hotel, motel, inn, or similar establishment and isn’t a dwelling unit."

I just have house rules loaded.For direct bookings I use a simple one page form with their dates and the amount paid.A hotel doesn't make you sign a lease.

A few years back I know a few hotel owners that had to install elevators.

When I visited few Airbnb, some of the hosts are saying "Hey guest, we try to serve you, but this is not 5 star hotel okay".