I do not care whether you knock it down and rebuild it or simply remodel it. The building definitely does not stand up to the construction quality of the rest of the city, so improvements to make it mesh with the city would be nice. Even the rail station underneath it is no longer necessary, since I built a direct line from the City Station to the Arena, so the Noob Hotel station is kind of isolated now on a shunt line that could be disposed of without any real loss to the system. One advantage of creating a new noob hotel would be that we could install more facilities for the noobs. We could add some basic automated facilities for them, like auto-harvesting melon farms for food, cobble/smooth stone generators, etc.
Another useful building for the city would be an XP farm. The kind I use in my lair could easily be built in the city without difficulty, and it could be encased in a tower structure of its own. Building a free-standing version, instead of embedding it in an existing structure like at my lair, would also give me the ability to cram some more spawners into the thing. The one at my place runs with 9 spawners. I could easily ramp it up to 12 spawners with a purpose-built structure, and I've got some theoretical designs in my head that could get it working with 16 or possibly 24 spawners, though I'd have to do some design sketches to figure that out for sure. I think that if I was able to hit 16+ spawners the thing would be even faster for XP than the end farm, while also providing more useful loot drops.
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