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No thats the whole story, there are no tanks, only storage in piping with recirc, this story with more info was in Wholesaler mag about 3 months ago.
Typically a hotel of this type (non-convention) is sized at 40% water use of total rooms
130 rooms x 2 GPM (mixed shower, lav doesn't factor in, no laundry) x .4 = 104 GPM required.
At the given rise, they are 50% of normal requirements, no doubt headed for trouble and customer refunds during heavy booked room percentages.
Put a cheap Indian hotel franchise owner with a young inexperienced distributor salesman and a contractor hungry for work, and you have a bad system.
But, Noritz isn't alone on this, use the Rinnai on-line sizing program put in 130 showers, sinks and kitchen (residence inn) and it will also tell you 10-12 199,000 BTU units (also likely to get you in trouble)
Racist comments have no place on the forum. Describing a person as cheap hotel franchise owner is fine but the line is crossed when you interject his race into the equation while in a negative context.
Your talking about a specific named person in the article whom you have never met. Seems like a "cheap" shot on your part.