The moment the person operates it as a hotel, the person has turned it into a business and semi-public space and regulation does not affect the privacy of the owner. In the dating scenario, on the other hand, it would.

There's a lot of behaviour that is undesirable to neighbours because it directly and negatively affect our lives, that we are still willing to accept (if possibly grudgingly) if doing anything about it would mean interfering in someones private life.