Interesting, I think the new Bay Spa Hotel in Craig Y Don will certainly be a great example of how that can work. It always looked lovely from the exterior, but standards inside didn’t live up to its architecture. Also people like Sam Nayar at Escape B&B have shown how the resort stay can be updated to give a more youthful and vibrant atmosphere.
Hotels & B&B are now competing with Air B&B, so perhaps there is a need for some of the hotels to bridge that gap, perhaps by operating some rooms on a not for profit basis to accommodate artists/musicians passing through internationally.
There is more commonly a “renovation deficit” rather than “conservation deficit” in many establishments in the Town.
Certainly North Americans would value more of a compromise between quaint and high standards for service and facilities cultural and leisure.