Translation:The famous hotel is where the old school is.
Why is the more formal and less ambiguous "The famous hotel is there, where the old school is" not correct? I realize that there are colloquial ways of conveying simple concepts in all languages, but my solution is grammatically correct as well as eliminating any possible misconception that that hotel could be a renovated old school building, or built partly on the old school yard, or actually replacing a school that used to be there.
This sentence does not have to mean that a building was replaced by another one. It just means that a building is closeby to another one. There is no past tense in this sentence, therefore a "was" can not be used. You can prefer your version, but it's simply not correct. Not in Hungarian, not in English.