Reference the definitions section:
220.127.116.11 Defined Terms "Hotel means floor areas, a floor area or part of a floor area that contains four or more suites and that provides sleeping accommodation for the travelling public or for recreational purposes."
18.104.22.168 Defined Terms "Suite means a single room or series of rooms of complementary use, operated under a single tenancy, and includes,
(a) dwelling units,
(b) individual guest rooms in motels, hotels, boarding houses, rooming houses and dormitories, and
(c) individual stores and individual or complementary rooms for business and personal services occupancies.
Notably a B&B under the NBP bylaw is limited probably quite correctly and differently to 3 rooms:
6.11 HOME BASED BUSINESS - BED AND BREAKFAST ESTABLISHMENT 6.11.1 Where permitted by this by-law, a bed and breakfast establishment will be subject to the following provisions. The lot and detached dwelling in which the bed and breakfast establishment is located must meet all the requirements of the zone in which it is located. 6.11.2 No person, other than members of the family who operate and reside in the establishment shall be employed except as is necessary for housekeeping purposes. 6.11.3 Each guest room shall have a minimum floor area of 10.5 m2 (113 ft2 ). 6.11.4 Guest rooms are not permitted within an attic. 6.11.5 No bed and breakfast establishment shall provide more than 3 guest rooms for overnight accommodation. 6.11.6 No food or drink shall be offered or kept for sale for persons who are not guests of the establishment. 6.11.7 In addition to the two parking spaces a detached dwelling is required to have by this by-law, a Bed and Breakfast Establishment shall provide one parking space for each guest room. 6.11.8 A sign shall be permitted provided such sign is not greater than 0.4 m2 in area (4 ft2 ). 6.11.9 Maximum number of occupants or guests, in addition to staff and host family, permitted to stay within a Bed and Breakfast Establishment - eight (8). 6.11.10 All Bed and Breakfast establishments must be licensed by the corporation.
B&B have no definition under OBC (as far as I can see. have a look yourself). So the 6.11 in the local bylaw created the legal framework and opportunity for them to exist. STA that are not B&B are in this legal ghost state and non-conforming. Arguably a B&B operator needs to demand the Corp provide a license mechanism too and immediately as the word "MUST" is clear.