The person is actually saying, "This hotel is the cheapest (hotel) in town."
He could just as easily have said, "This is the cheapest hotel in town."
It is easiest for the casualty to breathe in this position..
That's easy for you to say. (What noun would you put straight after 'easy'??)
It's hard to understand. ((What noun would you put after 'hard'??)
It's easier to go by car than walk.
It's easiest if everyone just brings their own lunch.
The easiest thing is if everyone just brings their own lunch.
That is the hardest thing I've ever had to do.