Hotel vs Bed and Breakfast Classification

For those of you who opened your hostel in a city without hostel regulations, what did you eventually get classified under? Currently, I have my model building (to show investors) and here, we only have regulations for BnB, motel/hotel and transient/halfway housing. So, because of the size of the building that we are looking, I am thinking BnB because of less regulatory hassles (if we can get approved, it takes months). So, while I'm cooling my jets, I want to know what/how you did and why.