Make sure you are currently running "The Motel v1.6" as this upgrades 1.6 to 1.7.
Note that this does not work with older versions prior to 1.6 as they use an older version of RenPY.

Then just unzip the contents of the patch into your folder.

The files should end up in your "game" folder, just as they are inside the zip.

Overwrite any existing files.

Note: I included all the source *.RPY files in this instead of compiled RPYC so you can easily look at and modify the source, or recompile it totally using another version of RenPY.  When you run the game it will automatically save any changes you make to these, so it's pretty simple.  You can delete scripts.rpa once this is installed as you no longer need it (just contains the same scripts in this patch).