Much of the hotel's history is unknown, but Beta, in his past as the singer Half Moon, appears to have had a history of some sort with it.
During the outbreak, the hotel became either the home for at least two people. However, both perished, one of an axe to the head. Neither reanimated and their decaying corpses were left in the hotel restaurant where they died.
While passing through the area with Rufus and the zombified head of Alpha, Beta spotted the hotel and recognized it. After killing Rufus and leaving him to be devoured by a walker outside, Beta entered the hotel and made his way into the bar where he found a note on hotel stationery reading "these 2 eyes see 1 truth," a guitar, some of his old music and a poster advertising one of his concerts. After ripping down the poster and smashing the guitar, Beta plays his record throughout the night, drawing a massive herd.
The next morning, with walkers surrounding the hotel, Beta rereads the note and thanks Alpha, stating that he sees now. Beta puts Alpha down with a knife to the head, cuts off part of her face to repair his ripped walker mask and walks outside through the herd, leading them away.