Final answer:
Yes, the Federal government can regulate this activity under the Interstate Commerce Clause due to the motel's engagement in interstate commerce.
Step-by-step explanation:
Yes, the Federal government can regulate this activity under the Interstate Commerce Clause. The motel in question is engaged in interstate commerce as it solicits patronage from outside Mississippi, accepts convention trade from outside Mississippi, and has a significant percentage of guests who are from out of State Y. The motel's location and accessibility from interstate and state highways further support its engagement in interstate commerce. The Commerce Clause of the Constitution grants the Federal government the power to regulate interstate commerce, and in this case, the motel's activities fall within that realm.