It entirely depends on that person I am visiting. If they have a nice home and it's a split floor plan and they offer there isn't any reason to turn them down. If their bedrooms and mashed up next to each other then I'd probably say no and make hotel reservations.
If I wasn't comfortable with that person's home or neighborhood I'd say we already paid for the hotel and couldn't get our money back.
I have a dear dear friend who was raised in a very elite lifestyle. Her family often had overnight guests during her growing up years. Her nanny or governess would take her and her brothers down at some point during the evening to say goodnight to everyone then they'd head up to the top floor and have their own dinner and evening things to do. She remembers Clark Gable coming to dinner a few times, that's how elite her lifestyle was.
They had a guest suite/wing on their house where a few bedrooms were located. Not much but a few. Not like some huge monstrosity we see nowadays. Maybe 8-10 bedrooms?
Anyway, this lady has a nice home now in a resort style town that is a tourist local that most everyone can find something to do and enjoy. She has never allowed anyone to stay in her home as a guest. She hated having people in her house growing up and just won't do it.
We can't afford a hotel bill every time we go see her so we don't go very often. When she comes to see me she doesn't/won't stay with us. She flat out just won't stay in anyone else's home. I accept that. Since she won't invite us to stay with her and expects US to pay for a hotel then she has to accept we can't come see her very often.
I grew up staying the night at relatives houses with a pile of kids in one bed. I can't imagine people coming to visit me and not staying with me. If they want to stay in a hotel it makes me think they don't really "like" me as a person but just see me because I'm a friend or family.