As I've held several gatherings in hotel rooms, there's no such thing as too small a place. What happens is simple - you host an event for N people, where N is the number of folks you can comfortably seat in your home. Having folks bring lawn chairs can work to aid this.
Seriously. Wouldn't you show to an event I had, even if I warned you that seating was likely to be lawn chairs? Would that matter? Nope.
The hardest part of getting a gathering together, at least for me, is finding a location. The hotel deal was an interesting experiment, but the cost is, for me, prohibitive, if only because I've locations here that are free. We here are looking into leased space, by virtue of wanting somewhere that we needn't clean, before or after. It's worth the money to avoid such, these days.
There's already enough folks for a small event, and if you want me to come out and help host it, and run your guests through my questionairre, etc., I'm happy to do so, and/or to teach you how. It's really easier than you'd think, and lots of fun, quite frankly.
Gee, you'd think I was trying to goad you into hosting, wouldn't you? I am. C'mon, host! 😉
My extremely biased $0.02,
dvnc