I almost exclusively do hotel shops. The vast majority of the ones I do are 2 or 3 night stays. I rarely do a 1-night stay. I do not consider them to be a pain in general (although there are certain ones that are). Rather or not they are a pain does not necessarily correlate with the star-level or the MSC, although there are certainly trends.
I focus on MSCs that either a) pay a somewhat healthy fee - which to me is at least $100 per night, and depending on the assignment, up to $300 per night and of course full travel reimbursed or b) offer an experience that I want - i.e. nights in a resort that is beautiful and beyond what I can comfortably afford and/or in an area that I want to see.
The companies that offer me a (the nice fee and full travel reimbursement) are generally not also offering me b (a desirable experience that I am willing to work for). Sometimes that is the case (which is shopping nirvana) but it is rare.
99.9% of the hotel shops I do are away from home. I did three hotels in 2012 that were within the major metro area of the city I reside in. I rarely take the local shops (although I can think of about 20 that are offered locally) because the "experience" of staying in a hotel in my local city is just not worth it to me. I would only take a local hotel shop if they fee/pay was high enough, and many just are not. The other 50+ hotel shops I did in 2012 were at least 150 miles from where I live. I would say 90% of the time, the reason why I am traveling to a particular area is because I have a hotel shop there.
For me - hotel shops allow me to travel and see the world much more than I would be able to do on my own. I have literally been "around the world" because of hotel and resort shops. While writing the narratives and doing the shop can be somewhat of a pain, and while sure I would prefer that someone just gave me a free hotel night and free airfare overall I consider it worthwhile.
In terms of your questions - it just varies so much. I work for one company that has very little narrative (in the end about 2 pages tops) but the amount of checklists and detail and nuances that you are responsible for (and the fact that the report is due within 2 hours of check-out) mean that I am working 8-10 hours each day I am on-site. I work for another company where 50 plus narrated pages for a 2 night stay is the norm. Neither is necessarily better for me - again my criteria for accepting a shop is soley based on either a high fee and full travel reimbursement or a really kick-a$$ experience.