Personally, I would rather see that key area of real estate used to improve the fan experience, and make the sports venue better. Use it to address weaknesses and bring the facility to the latest level of comfort and technology.
We know more locker rooms are needed. We do a lot of men and women doubleheaders where this is a big deal. We host a lot of tournaments/playoffs where this is a constraint. How many football games are played in the dome late in the year? There is no room to do proper press conferences for both coaches. Opposing coaches appear to be using a hallway right now. I think JB uses a locker room for his.
At least at one point, the media needed a room (to develop pictures maybe?). That might not be needed but they probably need more space. This was one of the issues preventing us from bidding to host the Final Four.
But more than any of that, there is a urgent need for more space on the western side of the facility for fans. There are no bathrooms on the western end of the facility. Not a single one. And yet we have 20K concentrated on that end for men's hoops games every year (and a lesser amount for close to 20 women's hoops games) and anytime anyone has to go to the bathroom, they have really long walks to do their business. So you need to add bathrooms on the western end (like done on the eastern end). Except on the lower and upper levels.
There are very limited options for concessions on the western end of the dome. You have to walk a long way if you want anything except for a handful of things (candy, water, soda maybe beer). Like everything, it is worse on the upper concourse.
And there is an acute need for more space on the western concourses. That small room built in the middle of the lower concourse on the eastern side that has the high tables for people to put their food and drinks so they can eat like civilized people needs to be recreated on the western side. It is needed more urgently on that side because that is the end where basketball is played.
Imagine if there was a restaurant in the dome near your seats on the western end of the venue where you could order a decent meal an hour before the game, sit down and eat it from a comfortable chair on a comfortable table, and maybe watch the pregame show and hear a breakdown of the game. I still work. It is hard to find time to eat dinner at home and stay get to the dome in time for a 7 pm weekday tipoff. Even if the restaurant was a fast food place, it would be a huge improvement to me. If there were a couple of choices...wow, how awesome.
Given there is no building close by on the other side of the western wall, I would think it would be easier to build out to the west and really open up the western concourses. Imagine a wall of glass looking over Onondaga Valley (okay, you would mostly see the new law school and a parking garage). But still, it would be nice to be able to see outside, have some room to walk around and a place to eat and drink.
If you doubt this is needed, all you need to do is look at the western concourses just before a hoops game or at halftime of a big game. They are a sea of humanity. It is a real mess and more space is urgently needed.
The hell with a hotel. Give me some space. Make it easier for me to go to the bathroom and eat and drink. That would be awesome and I think it would be really well received by the fanbase. Might even help to make up for the anger people are going to feel when their basketball seasons get reassigned to significantly worse locations.
