You said it yourself — their dwelling is the entire city. Those 400sqft are where they sleep and relax but most of their living probably happens outside. Different strokes and all that.
Same with a hotel. The hotel is where I spend most of my time unconscious. Other than a few select destinations, why would I spend a fortune at a place where I’ll mostly be asleep?
My experience with trying really low-ball hotels is not great. I rarely stay in really luxe places but I do usually go for some midrange business hotel in a city.
Yeah, my point was mostly against luxe hotels as opposed to somewhere I know will be clean and comfortable to get a good night’s sleep, and close to the places I want to visit.
Honestly I tried cheaper hotels and motels and often times I simply didn't sleep well there - usually due to some noise as some college or high school kids were running up and down the hallway outside or were partying in the room next door.
If you are going to count where they live to be the whole city, you should increase the rent they pay to cover the cost of the third spaces they use in the cities as well.
