In practice, these hotels become full of mentally ill, drug-dependent, and sometimes violent people, to the point where most people actually do feel safer in a tent.
You can police things, but it’s not an easy problem. Where do you draw the line? Zero tolerance? As soon as someone has an angry outburst, or is caught with drugs, they’re back on the streets? Then you get back where you started pretty quickly.
College dorms aren't full of mentally ill drug addicts. The population that lives on the streets has very little in common with students living in college dorms.
You can police things, but it’s not an easy problem. Where do you draw the line? Zero tolerance? As soon as someone has an angry outburst, or is caught with drugs, they’re back on the streets? Then you get back where you started pretty quickly.