When you compare the rates for hotels and guest houses, Guesthouses are a lot more affordable. Even thought the guesthouse is smaller than a hotel, the rooms is not smaller.
The service and facilities provided by guesthouses is a lot more personalized which make it a better option than Hotels, as it is smaller groups of people that sat at Guesthouses due to limited rooms.
Booking in to a guesthouse is a lot less time consuming, as mentioned above, there are fewer rooms so the process of getting a room is quick and easy. Unless we are fully booked.
Guest houses can provide a home-like feeling, due to it mainly being a converted home. There are numerous facilities exactly like you have at home, except these facilities are shared. Depending on the size and amount of rooms available, you might have a lot of privacy.