I was at my kids' school recently, and overheard a teenage volunteer telling one of the kids that there was a hotel inside the "big castle" at Disneyland, and you could make reservations to stay there.
I questioned the volunteer, telling her that I didn't think there was such a place, and describing the Dream Suite at Walt Disney World in Florida and the Dream Suite in the Pirates of the Caribbean building in New Orleans Square at Disneyland, but these were special suites that you could only win in a contest. The person insisted that there was a hotel inside the castle, because she knew people who worked at Disneyland.
I think I am fairly knowledgeable about Disneyland history and what exists in the park today, and am 98.5% certain there is no such place, nor was there ever such a place. There are only a few retail stores on the ground level of the castle building proper, and of course on the second floor there is the Sleeping Beauty attraction, which was built a few years after the park's opening because Walt Disney wanted to do something with that empty space.
But I wanted to throw this out to the discussion forum.
Also, if there is no such hotel, what do you think she was thinking about?