A hotel and guest house provides travelers with temporary living spaces but a hotel is where you get an individual room that you rent that has your bathroom, sink, bed etc in one small space.
A hotel also provides more services than a guest house does as well.
A guest house is a house that is rented out to people to stay in and is usually better than a hotel because they may actually have a kitchen, living room etch in the guest house depending on the size of the guest house.
A guest house could also be a small house in someones backyard or on their property to allow relatives a private space to sleep and stay when they're visiting.