Why is my hypothetical disqualifying? A lot of people actually use their houses as hotels, it’s called air bnb. It’s pretty profitable to use the property like that

If you include the hostel owners to live in them, they will be converted into hotels that don’t have that requirement. That’s not my argument. My argument is permanent residents will be forced to live in hotels as apartment buildings get converted by their current owners who can’t possibly live in all of their properties at the same time