And before you answer, consider that some neighborhoods have also kicked out tenents who had established webcam-sex houses. These places had no extra traffic to their residence because of the business they operated (just several women rooming together and occassionally having sex together for the webcam), but because they operated in the sex trade, their location could be restricted.
And the hotel in question is not engaging in the sex trade, not establishing a "sex trade" place of business such as an adult book store. It is providing its facilities to an organization/group that has done exactly what all others who have used it have done... paid the fee and abided by their rules.
And what makes you think that i don't invite such activities to my home? I clearly would be in my rights to do so. Your allowed to throw parties at your house aren't you?