A motel is defined as "A roadside hotel designed primarily for motorists, typically having the rooms arranged in a low building with parking directly outside," where as a hotel is defined as "An establishment providing accommodations, meals, and other services for travelers and tourists."
Basically, a motel is more run-down than a hotel and is generally used as a last resort. A hotel is more refined and provides extra services to its customers, so it's the place to go to for incoming tourists and travelers.
I hope this answer helped you! If you have any further questions or concerns, feel free to ask! :)
