Hotels are charging depending on the number of people who will use the room, there is no kitchen so you will have to eat outside at all times (ok you can have the breakfast for free if you make it on time), the rooms are small generally 12-16m2, no washing machine so add the additional charge for the dry cleaners.
Apartments are much bigger for example in www.citystyleapartments.ee the smallest one starts at 40m2 so it is at least 3 times bigger then a hotel room, you have a kitchen, washing machine dishwasher and so on if you stay long enough (starting from 2 days) you will get the free transfer from any point of arrival in Tallinn.
So for me the choice is obvious:
With renting an apartment you are supporting the local economy more then when staying in an international brand hotell (these are big corporations which charge management fees and spend a lot on advertising so that is where the money goes).
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