It dates back to at least 1995 when I went to prom. Most parents gave up parenting in the 70’s and 80’s. There’s probably more decent parenting going on now than when I was a teen.
I went to HS during the mid-80s and never heard of anybody booking a room for Prom Night.
When I went in the 80's, quite a number of people got hotel rooms. One group of parents in our class rented a party bus, stocked it with a keg, and let their kids stay at a rented beach house. It appears much tamer now.