I like it. Unfortunately, I’m not your client ;-)

What was the reason behind their not liking it?

The client wants something vibrant and playful as it is only a boutique style hotel. I was brief with this info and just thinking a step forward in case they plan to expand then a re-brand wouldn't be necessary at all. Unfortunately, they did not consider it and what really broke my heart is when I saw the direction they're going to.

welcome to "working with clients"

(seems like nice work though, but...it didn't fit the brief)

I don't know if it's vibrant or playful, but #1 is absolutely spot on boutique hotel. At least the kind I personally like to stay in :)

Ratbaggy makes a good point, however, it is a great looking mark.