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Like you, Hotels became a cash cow, as I earn 25k-40k each day and already have over $2,000,000 without unlocking 4th floor or basement yet.
As you can see from this screenshot, my income from the Hotel makes the actual Tavern more of a detriment than a benefit.
https://steamcommunity.com/sharedfiles/filedetails/?id=2952990768
Even food sales are more beneficial than selling drinks, and since drinks and food both require a large group of staff, it soon becomes obvious that the Hotel is all you need to succeed.
But hey, it is still early days and I am sure the devs will be addressing this disparity.
Perhaps there could be events like taxation, oppressive taxation, arson, wars, royal decree, invasion, and so-on that could throw a wrench into things forcing players to start on a new map or under new conditions, or fulfill quests?
Dunno, just rambling here. Love this game enough to want to provide solutions to keep players invested.
At first, customers come in because its near the road, its indoors, and there's alcohol. They spend a coin or two then leave. You costs are low, and your profits are low, but you grow day by day.
After awhile, travelers start to recognize the bar as a genuinely good place to stop. You start to serve food and maybe hire a band to play. You open a room or two for those who party a little too hard. Your costs are growing but you remain profitable.
Finally, after a significant amount of time, you've garnered a reputation as not only a good place to stop on a journey but as an actual destination to visit on your own. You've got multiple bars, multiple restaurants, a few live bands and the local lords frequent your establishment. Now you've got an entire floor or two dedicated to rooms where people can stay simply because some of your parties last two or three days. Your costs are insane but your profits are equally high.
Basically, the tavern can only function as a hotel because you've grown your reputation enough that people want to come visit your tavern-not because its a great hotel. In real life, if you were to shutter the bar, restaurant, and bands that made it great, the hotel would go out of business pretty quickly. Additionally, a good bar can go out of business from a single bad interaction between a waiter and an extremely famous patron if not handled properly. This is important because reputation in the game is treated as a largely static metric that simply increases from the number of things you buy which is decidedly not the case.
If the game was more complex, I'd wager that reputation would be much more dynamic in that you could drastically gain and lose it daily through service\amenities\etc and you'd also have a much more direct role in how your staff interacts with customers. (See some of the Bistro Huddy videos on Youtube for some direct examples of this)
I won't lie though, I think at some point you'd lose that sense of running a medieval fantasy tavern in exchange for running a legitimate hospitality business in a medieval fantasy setting.
Anyway, the long and short of this post is that Hotels are more profitable than restaurants\bars but they are reliant on a reason for people to visit them. This game isn't quiet complex enough to reflect that perfectly, but it does try to represent that by locking research goals behind ranked customers which appear more frequent through specific events that force you to have the bar and restaurant to be open.
Cheers!