Bandwidth just doesn't seem to be there. You start out with fiber and super low latency, but by the time it reaches the hotel it is already down to less than 100Mbps which is quickly consumed by users online. Come night when everyone relaxes and gets online (especially HD video streaming) the bandwidth is quickly consumed by >20 people. Even with a dedicated caching server and equipment to distribute bandwidth, it still is gone fast. A Proxim Wireless G access point connected to the LAN by gigabit is quickly overloaded when 20 clients try and access network files at the same time. For a place like a hotel, massive amounts of equipment are needed to handle such huge demands.
This article helps convey how huge of a setup is needed to support masses of uses at the same time:
http://arstechnica.com/features/2012/08/why-your-smart-device-cant-get-wifi-in-the-home-teams-stadium/ 
