1925, coined from motor- + hotel. Originally a hotel for automobile travelers.
The Milestone Interstate Corporation ... proposes to build and operate a chain of motor hotels between San Diego and Seattle, the hotels to have the name 'Motel.' ["Hotel Monthly," March 1925]
1640s, "public official residence; large private residence," from French hôtel "a mansion, palace, large house," from Old French ostel, hostel "a lodging" (see hostel). The sense of "an inn of the better sort" is recorded from 1765. The same word as hospital.