Hi Aeowyn
Couple of suggestions, staying in small hotels 3 or 4 nights a week as i do, like now.
Linen would certainly be sent out, imagine the the amount from 14 or 15 rooms every day, sheets, pillow cases and uniforms (mainly from kitchen staff) would go elsewhere for cleaning.
Some sort of divider between the restaurant tables and the comfortable seating area, not necessarily a wall maybe some trellace and indoor plants or some screens.
If the downstairs bathroom is for staff, does it need the bath, the space might be better used if there were a small changing area for them with sinks and a toilet.
You mentioned no lift, bit of a struggle for the elderly or young, for the luggage maybe a dumb waiter just infront of the reception desk, rooms 106 and 206 would lose maybe 3x3 of space but they could be for single occupancy, and a lift would not look out of place alongside the porch on the outside of the building, its doors would only affect the storage cupboards on the upper floors.
As for the atrium area, beautiful,
, i would certainly rather be there than in the restaurant i will be using in an hour. 
Great job.
Mike
