Netflix does a couple of things that helps them (obviously this is a bit of a technical answer):
- The streaming protocol is adaptable to your available bandwidth, which in English translates to crappy wire = crappy quality. The Netflix protocol does a nice job of adapting to changing network conditions in their video player software. Youtube and other public video sites uses a standard players that's are lot less sophisticated, plus uses a public protocol/encoding while Netflix's is proprietary.
- The data is moved closer to you, as in Netflix uses content delivery networks (CDN - essentially servers that replicate the content to places nearer to where you are) so that if you are in L.A you get the data from one edge server, while if in Seattle you'll be routed to another one that's physically closer to you. Youtube does something similar for very popular content, but Netflix's library is smaller than Youtube's (obviously, i.e. longer content but an order of magnitude less choice plus less change).
- Netflix buffer more aggressively that Youtube, in that it's ok to wait 30 seconds for a movie to start, put it's unacceptable for Youtube due to the shorter content. Netflix also has a variable buffer in that as well as reducing quality while you watch, it will 'cache ahead' more if it detects drops. Put another way, Netflix buffers more while you watch while Youtube and others just try to load as much as possible.
- Netflix can use a 'connectionless protocol' of UDP to stream, which in English is more of a way where if you don't get a response the other end doesn't care so much and just keeps going. Web traffic is often through a transport protocol called TCP/IP, with the TCP part indicates some sort of 'did you get this? Shall I continue or send again?', while UDP is more of a 'I'm just going to keep trucking and will check back on you in X cycles', i.e. one is a conversation with reliability and the other is being shouted at until the shouter gets bored and checks if you're listening. Browsing the web needs some reliability while watching a movie it's ok to shout.
Hotel networks are often bad because they are unpredictable rather than inherently slow. Typically bad latency (variable timing between calls, due to network saturation and unpredictable traffic patterns) makes browsing the web a pain but streaming video can be like you've seen, not too bad.
I hope that helped.