If he's booking you for an outcall it's up to him to provide the hotel, unless he wants you to book it after he sends you the money to do so. Otherwise it's an incall and your hotel room, so you could take some other bookings while you're there.
He's got a bloody nerve trying to talk you down to some cheapskate rate - of course he doesn't want an 'escort rate' because that would mean paying you properly! What you charge depends partly on your location and also how long you plan the booking to be (8 hours, 10, 12?) but these are tough bookings. The last one I did before I stopped offering them I charged £900, I think and that's more than ten years ago; you likely won't be up to working the next day so take that into account too.
Nowadays I'd want 12x my hourly rate, plus cover for lost earnings the next day and a premium for not being able to sleep at home in my bed, so I reckon about £5K would do it