Looks like a labor of love, hope they make a go of it. Comments are full of people saying they can stay at one of the casinos cheaper. They kind of miss the point of a little motel. And the owners don't have a casino floor to subsidize a hotel. Plus the nightly charge keeps it from being a flop house.
There is a bit of a niche trend of people buying up these old motels and giving them a nice freshening up so the customers are hipster/dink coupes and families, not meth addicts and hookers.
I stayed in a place in Napa like that. It was an old run down motel, that new owners spent a fortune on. Same thing, standard tiny rooms, but done very nice.
It's good to see an existing business get "reborn". The leaf licker view, it takes less resources. I don't know if it is financially a better move, but permits may be less extensive.
In my early 20s I stayed in that hotel. The door wouldn't close and lock properly so we backed the truck all the way up on the sidewalk tight against the door so you had to climb up over the truck to get in. All we could afford and a step up from sleeping in the parking garages in the bed of the truck....simpler times