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I think in understand now.

This whole gender of nouns is pretty alien to me. Not had to deal with it since French class at school, which is far too many years ago now.

Ah, OK. I wasn't sure about that bit. I still a lot to learn.

I went with она on the basis that the hotel had already been named. I take it this is not correct in this case then?

Yes, that's it, но я не знаю если она хорошия гостиница или нет. (I hope this is right)

I'm sure it does not effect the meaning of the story at all but the location appears to be the Hotel Moscow in St Petersbourg, not the city of Moscow.