is ILR grade inflated or deflated?

Switching between hotel and ILR is more complicated than just changing majors; it would involve an internal transfer. For hotel you need to be either a freshman or sophomore to transfer internally, and for ILR you need to have at least four semesters of residency remaining (which basically translates to the same thing).

Here’s info for hotel internal transfer: https://sha.cornell.edu/app/sso/ugrad/internal-transfer-info.html

Here’s ILR (if you scroll down): http://internaltransfer.cornell.edu/internal-transfers/colleges-and-schools/#7

Both schools are very different in general; I would research both carefully if I were you and decide which one best aligns with what you want to study and what you want to do after graduation. Both have the potential to lead to similar career outcomes, but obviously each specializes in different things that might make one better suited to lead to a specific career path.