Well regardless of all things previous...
It isn't like people don't have private places to do things like this anyway... I mean most people live in things that they own, where their beds are, and they keep their stuff... they're called houses...
If the hotel isn't being used, then it sounds like that little spot on the map isn't popular enough to warrant having such a building... rather than customizing it into a sex palace... why not build something the place actually needs... or get rid of it and build a park or something...
I don't care what people do to eachother, but I'm pretty sure they don't need a specialized place in order to find other people to do them to... People have been doing all manner of things to eachother for centuries with little need of anything more than some alcohol and a place to call home...
I'm pretty sure, regardless of the reasons, not having a special sex-club isn't going to stop anyone from anything... For instance, not having a special room to piss doesn't stop people from doing it.
It sounds to me that the populace of Gloucester has multiple viewpoints... those who tolerate, and those who don't. In the event that it was built, it has the possibility of creating unnecessary unrest in the intolerant public... which may or may not be the majority... In that situation, it seems like more harm than good.
From a morality or whatever-you-want-to-call-it sense I have no opinion worth making public. Frankly, my opinion doesn't matter in this situation at all...
It's all sort of pointless really.