I don’t know how any government can just take over private property like that, in a free country, that is. Once the hotel businesses are destroyed, they will probably cry about “hotel deserts.”
As the owner of a few rental properties in the People's Republic of Oregon, my properties were taken over by the government for Covid, and have been taken over by statewide rent control, which also includes "just cause eviction". If a tenant becomes undesirable over time, I can no longer require them to leave.
There was never even a thought of compensation for the taking of my property.
Taking over a few hotels is child's play for these politicians.