Complex sentence: The inn's fortunes declined over the years, however, as the city of Scarborough grew more urban around it, making it less desirable as a vacation spot yet still too far from the city core to serve as a utilitarian hotel.
Split into simpler sentences: The inn's fortunes declined over the years, however, as the area around the hotel became more urbanized. This made it less desirable as a vacation spot yet still too far from the city core to serve as a utilitarian hotel.