I just noticed in episode 126 from 1965 that Hugh says he's interested in buying the house "a mile down the road", Fairlawns. Its at this point residential.
Yet most books suggest it was always a hotel... and its noted one of the early Sandy stories (in the first fiction book also) that he went into Fairlawns and replaced the salt with the sugar.
Curious.
I will have to take a look at episode 126 again, however I always thought it was a Hotel since it was mentioned a lot in early episodes.