I think its a setting in the oblivion.ini.
From the Wiki...
This setting can be changed in Oblivion.ini. Find the line
SSaveGameSafeCellID=2AEEA
2AEEA is the form ID of the Tiber Septim lobby cell; this can be changed to any desired cell's form ID.
SSaveGameSafeCellID=2AEEA
2AEEA is the form ID of the Tiber Septim lobby cell; this can be changed to any desired cell's form ID.
So IF one were to pick another "test" cell the Hotel would work again? hmmmm
Also from Wiki...looks like that quest and one other ...[quote]Related Quests
The Lonely Wanderer: A High Elf in the Imperial City must be removed from existence.
Nothing You Can Possess: Umbacano wants you to recover a decorative carving from the High Fane.[/qoute]