The makers of Luigi’s Mansion 3 talk about setting the game inside a grand hotel instead of a mansion, they wanted the players to get an actual feel of the game and not be restricted by space and be able to discover places and see the contrast in various different themed rooms they have.
Nintendo really wanted players to explore this time around and see how every different area is designed and there will be different challenges to every new place to go. This was done so that the game does not feel lethargic and it gives players something new to do and figure out which keeps them on their toes and invested in the game.
There were discussions about making warp travel possible with the help of TV sets in every room but it was ultimately disregarded, instead the primary method of traveling to different sections of the hotel is via the elevator but that too does not work as intended, because it has a mind of its own and will always drop you off on a random floor.
The release date of Luigi’s Mansion 3 is not confirmed as of yet but it will be released for the Nintendo Switch this year.