Larger Motels with a volume advantage can undercut smaller one's profits thus offering bigger deals and such where as the smaller Motels just can't compete.
Now smaller ones have lower overhead costs compared to larger ones but smaller ones must make every dime count and larger ones offer more perks to attract customers where the small ones can't
Well there are many pros and cons... But since we're talking cons - small hotels attract people with lower budget. Most of the time you'll be having gentlemen with love fairies (if you know what I mean). I tell by experience.
Otherwise it's calmer and easier to run a small hotel.
If you are running a small hotel, you have to serve at reasonable prices where as the high profile hotels serve the same product at higher prices.
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