However the hotel rooms have really strict rules. For example there's a curfew for a dumb reason[1], and people who get back to the hotel too late have to wait until the next day to return to their rooms. There's also limitations on how much stuff they can bring with them into the hotels (no more than 2 suitcases or shopping carts full of stuff) which if you've seen many encampments you know will be a dealbreaker for some.
[1]: The city has designated COVID screeners during the day, but when they go home it's just security guards at the hotels. However the COVID screening is just a thermometer check so they could totally just teach the security guards how to use thermometers.
I know a lot of people, myself included, who were fully employed and have rented rooms or even apartments where 2 shopping carts full of stuff would not have fitted.