When traveling for long periods of time or with a family, it's very nice to have the extra space, kitchen access, free wifi, free parking, and more.
Families with children
Couples who like to go to bed at different times
Friends traveling together
2+ night visits
The smallest of my rental properties is 575 square feet (dining area, full kitchen, full living area, bedroom, closet, and bathroom with tub shower combination) while the estimated average hotel room is size is 325 square feet with just a room, a bed, a bath, and a closet.
My smallest rental property is still typically 20% - 50% cheaper than a hotel room with almost twice the space, separate areas for comfort, and full kitchens (which saves a lot of money - no need to eat out for every meal).
My largest rental property is 1500 square feet, has 3 bedrooms, 2.5 baths, a full kitchen, dining area, living area, bonus room and more. Rather than getting 3 hotel rooms for large families or groups traveling together, renting one of my larger properties is more comfortable and less expensive than other alternatives.