The only bizarre thing is that after having people on the moon fifty years ago, nobody bothered to go back. The natural progression would have been to keep on launching more and bigger rockets and put more stuff up there. Eventually going to Mars (the moon rockets were actually over-engineered on purpose to eventually allow that). However, that never happened and NASA settled for some cheaper successes in low orbit. The Russians kind of checked out of the whole thing after failing to get there first and after they got bogged down economically due to the cold war. And having more or less won that by the eighties, the US dialed down spending as well.
It's only now that we have some commercial companies making serious attempts to make space travel more cost effective that we are contemplating going there again. A commercial hotel starts making a lot of sense as soon as you have wealthy tourists going up there or highly skilled people traveling there for "work" that have Ph. Ds, rich employers, etc. Classic target audience for hotels. They'll want comfy accommodation, nice food & beverages, etc. Still a great business plan as soon as somebody figures out how to get stuff up there cost effectively. Millionaires are lining up to visit ISS. E.g. Tom Cruise is going there apparently. But ISS is not a hotel of course. It also lacks a lot of things that people might want to pay for. Like toilets you don't have to share with others, privacy, air that isn't foul smelling (a big thing apparently), etc.