"The manager of the Hotel offers free rooms to guests of particular note or interest. He irritably denies the suggestion that he might be 'collecting' them."The Royal Bethlehem Hotel, formerly the hospital of the same name, is an elite hotel managed by a man who may actually be Gilgamesh (more information here). It is located across the Stolen River from Ladybones Road. Fallen Londoners may purchase a room there for a quite exorbitant price (no, this is NOT a free room like in the quote!), then upgrade it for one that is simply ridiculous for all but the most famous among them.
The manager likes to collect "guests of particular note", and by that he means the mentally ill/nightmare-plagued. If anyone starts showing symptoms of insanity, he will be by their side, ready to take them in when they finally snap. It is unknown what he gets out of this. The higher the room he provides them with, the more interesting he finds their malady.