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A war zone is a dangerous place, you want to cover the fight be ready to duck for cover. If Saddam's men use the hotel to launch attacks against the U.S. then it's a fair target. No one, if fired upon, is going to say "Oh, no we can't shoot back cause there might be journalists there." Nobody. Not even the Belgian military........oh wait....that's an oxymoron, sorry.
So if Saddam enter in a hotel where there are hundreds of civilian you fire the hotel. How many collateral damage percent do you think is ok ? And if the otel there was US or UK army you say "I'm sorry but it's just a friendly shoot".