It also boils down to the plain and simple fact that the LDS Church has stated they don't want to be in the Hotel business and not necessarily because of the sex issue. That one I had never heard or even considered.
My understanding is that they want to simply reduce the number of business interests that they own and run, that operate on Sunday. Obviously they have a few business interests such as KSL and the Des News as well as security personnel, but a hotel would greatly increase the number of paid Sunday workers.