Hotels are buildings where Ness and co. can stay overnight to fully restore the party's HP and PP, the expense depending on which hotel they are at and how many members are in their party at the time. Unlike drugstores, hotels allow the free use of telephones (with an exception of the one at Summers, since it uses a pay phone.) All hotels have an ATM room and usually two guest rooms. Jeff can use the opportunity of staying at a hotel to fix his gadgets overnight. Sadly, these hotels can't revive any fallen party members, since this job is exclusive to the desk clerk in the Hospital. In the morning, after Ness and co. awaken from staying overnight, the bellhop will read the headlines of the town newspaper, which usually have titles that relate to recent events.
In Mother 3, hotels and hospitals were replaced by Hot Springs, and there were no hotels or hospitals in Mother 3. This means the hot spring is used to recover HP and PP, remove any status ailments, and revive any fallen party members.
The theme of a hotel in EarthBound, can be heard in a jukebox of King P's in the Thunder Tower. This can be heard as #161, "His Highness' Memory: 2H" in the Sound Player of Mother 3.
In one of the newspaper headlines the bellhop reads to Ness after his stay at the hotel, there is a typo where it says "The Twoson Tribune, the neighboring town's newspaper, also woth reading."