In the name of Allah, Most Compassionate, Most Merciful,
The great Hanafi jurist (faqih), Mulla Ali al-Qari (Allah have mercy on him) states in his excellent and one of the most reliable works on the topic of Hajj in the Hanafi School, al-Maslak al-Mutaqassit:
‘When one completes the Tawaf al-Ziyarah, one should return to Mina’..One should not spend the night in Makkah or on the way (m: to Mina), because spending of the Mina nights (baytuta) in Mina is a Sunnah according to us (m: Hanafi School) and Wajib according to Imam Shafi’i (Allah have mercy on him). If one spent most part of the night in other than Mina, then this will be considered somewhat disliked (makruh tanzihan), but there will be no penalty necessary on such a person according to us. It is a Sunnah to spend the nights in Mina during the days of pelting (rami).’ (See: Manasik of Mulla Ali al-Qari, P. 234-235)
Thus, in the Hanafi School, it is a Sunnah to spend the nights of Mina in Mina. To spend the nights elsewhere is Makruh Tanzihan, hence not doing so does not necessitate a penalty (dam).
However, one should remember that one should not take this Sunnah lightly. One should not leave the Sunnah of the Messenger of Allah (Allah bless him & give him peace) merely for the sake of little comfort. The nights spent in Mina are much more virtuous than a comfortable night in the hotels of Makkah.
And Allah knows best
