Maybe I should have posted my OP in the FlyerTalk Cares forum, given that many hotels had this policy in normal times.

Badenoch, hotels are in the business of renting rooms to strangers, where they have privacy during their stays.

to Bear96's reply to Davie355! Very few homeless people have passports! It could be a solution to people who need lodging because their homes are damaged or under repair, but it does seem strange to present a passport as ID in one's own home country!