Yes, his hotel example is not as good as the gasoline-generator example. A hurricane rising hotel room prices will not cause more hotels to be build unlike the gas-generator example.
But he still makes a valid point. If I have to pay 2X now what I would pay pre- hurricane then I have more incentive to share the room with others than I would if I got it cheap because I got on that three mile line before the others.
Yes, this requires unfairness. But nature is unfair. Why cant same sex couples naturally reproduce by having sex when we hetros can?
More typical would be the attitude, I paid for it by myself, I'll use it by myself.
Sowell always makes valid points but anytime a hypothetical example is used certain things are assumed that may not be the case. Like the willingness of the moneyed renter to rent just one room when he can afford two.