It is possible that there was no Herodian era town of Bethlehem at all. For most of the past 20 odd years the consensus was that there was no town at the site of Bethlehem around the time of Jesus's birth. There had been one earlier. And there was one later. But there is a complete lack of any archeological evidence for the Herodian period. And we sure would expect some.

That said it is possible that a very small village of just a few buildings could have been there. And the Christian narrative has been consistent about the birthplace since the 1st century. Which weighs in on there being something there.

If Bethlehem existed at all... it would have been very small. An inn remotely similar to what the modern mind thinks of is very unlikely. And the manger would have been a natural cave not a building at all (which agrees with Origen). Instead there would have been a few houses at most and no public buildings or businesses at all.