Why not "The hotel lies next to the coast"?
That would be: Hotellet ligger ved siden av kysten.
Why ved and not på here?
Don't expect rules for prepositions... (På is also accepted here, but 'ved' is more common)
So is it true that buildings (lile a hotel) 'ligger' but don't 'står'? A bit counterintuitive, but fine if I can generalise this way