I remember the movies was about the grinch and he owned a hotel. The hotel was very Dr.Seussy in style and the movies was live action I believe. I rented it at a Blockboster like 8-ish years ago. The film was in color. I think there were some form of puppets but that part I’m not sure about.
“The 5000 Fingers of Dr. T” (1953)?
https://www.imdb.com
Nope