Translation:This hotel is in the center of the city.
My gut reaction would be that "town", being a countable noun, requires an article: in the centre of the town. Of course, there is "in town", but that is not really a noun, rather a compound adverb. I've heard "in the centre of town" used that way (i.e., as a compound adverb), but it always sounds funny to me. Then again, I am not a native speaker...
Essentially, "находится" simply adds gravitas to a sentence. There are some intricacies in usage, but no hard rules. It's just that in some situations the sentence without it feels too abrupt so people add it. Mostly it signifies a more formal speech. And conversely in everyday situations it often feels redundant and stilted to use it so people don't.