That is how I bought my boutique hotels in Costa Rica. 

And another part of the town considers it to be residential, so it's exempt from most building codes and inspections that would normally apply to hotels. 

I am looking to purchase an extended stay hotel.

I have a goal of getting one hotel this year in my portfolio. 

you have to learn land entitlement. we identified a site today for hotel development that was an 18000 sq ft lot.

They are a commodity, and owners are competing directly against hotels in this space, so rents are ultra low.

I just stayed in a hotel in Moab and we had an A/C issue and it took two days to resolve and, honestly, that's not that out of line with my normal experience at hotels.I don't know where people dreamed up this idea that all hotels have someone waiting outside your room ready to resolve anything in 5 minutes. 

STRs are essentially small hotels, thus they are usually taxed similarly to what hotels and motels are.

Is your place also a studio like hotel room?

Also the Hard Rock Cafe just opened a Hotel/Casino.