The oldest hotel in the world is The Nishiyama Onsen Keiunkan in Japan and has been in business since 705AD. The crazy thing is that it’s still a family business. For 52 generations.
The hot springs there have been regarded as healing. I guess once the word got out people desired to visit there. And since the area is isolated as you note, building a hotel there may have been judged a good business opportunity.That's not what's strange.
Its weirder that its apparently in a middle of nowhere and it still had visitors for more then 1,000 years.