It looks like Google is now testing shows image extensions in the Google Hotel Ads. Lluc B. Penycate, who follows the hotel space carefully in Google, noticed this and said this is the "first time seeing images in Google Ads for hotel branded searches."
He posted numerous screenshots on Twitter, none of which I can replicate. Here is one of those screenshots (click to enlarge):
One point he made out, which I agree is strange, is "the majority of photos I see in the ads are also the GMB featured image." Yes, if you look, the Google My Business featured photo is one is being used as the image ad extension. I wonder if that is automated or manually done by the business?
I did not see image extensions in the Google Marketing Live 2021 announcements around hotel ads. So maybe this is new?
Forum discussion at Twitter.