The expansion could be made as area of its own, add few new rooms or replace one of the function rooms. If we're worried about sexy elven fun times, add some NPCs around, otherwise with that fear we should remove every swimming pool from the Cordorian quarters, Andunor's hot tubs, Sibayad bath house, etc.
The Nomad gathered gold in the 10th Anniversary event and is willing to pay as IC action for the expansion to keep the inn interesting and evolving. What we like to add is nothing big and world changing, just a spa with hot tubs and maybe a sauna. Let Cordor have its first bath house through the Nomad!

Heartwarm regards, Wotan Woodberry & the Nomad crew