Why anyone would want to hotel is beyond me though.....
Just depends how you like your Le Mans I suppose.
If you pardon the expression we have done it most ways... our favourite is combining hotel and staying at the circuit for the race. The hotel we use has a great atmoshpere, and is crammed with like minded race fans/car freaks. Much drinking etc. still goes on so no difference there, the main benefit (for me) is a modicum of comfort before the race and some decent food. The bogs and shower facilities are also significantly better
Main drawback is of course travelling to and from the circuit for night qualifying and Friday pits walkabout but having been going for ages though you get to know the best routes in and out.
If you are intending to use an Hotel though all the good venues are booked at least a year ahead in my experience.