Ideally a passionate hotelier would offer their function room once a week for free.
That used to happen. We once dance at a milonga in a closed restaurant in the Netherlands, but no idea how it was funded. There are no free lunches now. Those hospitality venues are desperate for income. Similarly so-called 'community' venues. I have seen a swing dance evening at a London eating venue whilst dining, which appeared free for dancers whilst a live band played. More providing entertainment and filling the space I suspect.
A local charity has a dance studio in a building they've acquired for community use. Nice floor, mirrors, sound system. I enquired about renting it for practice, but decided we'd manage with the dance mat and limited space. So, it's not used for 'community', but rented out as rehearsal space to a broadcaster.
Another local organisation is trying to raise funding to extend the local school dance facilities. The only problem is that it's looking at 'performance' events with audiences, or maybe yoga. No interest in 'social dance', unless you can pay a lot.
We also have a lot of empty space in towns as businesses, shops and banks have closed. Regeneration for the community thinking seems to be about getting shops back.
I understand the economics of providing the space and work involved, even an outside event. The
labourers do deserve their wages - an appropriate income for their work and capital risk. Nevertheless the event also has to be affordable to attendees. Current expense hikes for energy, etc, are likely to impact spare money for leisure pursuits.