The hotels agreed to this insane arrangement because they were devoid of guests otherwise. They were desperate for the revenue. One has to wonder what condition they will find their rooms after the derelicts are finally evicted. Will the refurbishing cost exceed the rental revenue? Will the rooms be contaminated with head lice, bed bugs, and the smell of urine in the mattresses that will require them to be replaced. Did the hotels make a good deal or not?
No, they did not make a good deal.
The only way to cleanse the hotels is by burning.