As a self-employed hotelier where I live if one doesn't have the permission of the owner to stay somewhere then that is squatting and squatting is a criminal offence.
My impression is that the police were very lenient with these people, they referred them to McDonald's believing that McD's might still be open and/or they referred them to the hotel making suggestion that they check-in as paying guests.
Alas the thought of putting their hand in their pocket simply hadn't occurred to these people