I agree that location is important.
I think think location suppose to work separate. Now you have to choose name of the hotel and range. If I choose the name of the hotel probably I know where hotel is located. Example: search for 'New yourk,USA' will show all hotels in NY. When you click on hotel you will see the rooms and will make booking
I think to search hotel or to choose hotel its good to work separate too
I think range is good to work separate. It will show list with all free rooms for this range.. It can work as now too - combination with name of the hotel
I think such type of searching will be more useful for clients