I think a fenced yard is essential. We have just returned from 4 days in Hervey Bay, we stayed at Best Western Quarterdecks @ Uranguan, which was pet friendly. We have a small maltese cross, who appreciated being able to go outside on her own in the small fenced yard. There was a bit of grass for her to roll around on, and a paved area that was warm.
Guess it depends on the dog, size etc, but even with a little dog, I still prefer a fenced yard.