^ lofter, you're obviously starting to get it.Then I must ask: What is so hard to understand that if the plan were altered as you propose, so that the portion above the base is narrower and taller (say 35' x 35' rather than the ~50' x 50' as shown) then that completely alters the floor layout along with the room size & placement? Using the stated total room number of 72, the plan as presented allows for 9 floors w/ hotel rooms: 8 rooms / floor @ ~ 12' x 20' / room (+ 10' for hallways / core running along the center). Change the calculus to make it a tower / base structure and the plan would need to rise to 12 floors w/ hotel rooms, and into that structure one could only fit 6 smaller rooms / floor @ ~ 11' x 13' / room (again with 10' for hallways / core running along the center). Adding 3 additional floors would totally alter the costs involved.
Kaufman is hired by these hoteliers because he was the original guy to break the NYC street wall mold and figure out the way to best fit more rooms onto 25' & 50' wide building lots as found in NYC. The aesthetics of Kaufman plan are way down on the list of necessities (and are simply pasted on the facade, as is apparent when viewing his tricked up bricks seen all over town).
The Kaufman model is also used by higher end hotels. Check out the Crosby Street Hotel and 60 Thompson. Both are set back from the streetwall and rise as a box straight up, allowing for a uniform fit out of rooms / plumbing / fire stairs /elevators throughout.