Help understanding changing locations.

I am having trouble understanding exactly how the multilocations works, and if I should use it for my application.

I am setting up a directory that covers my county, which includes 3 main cities and a couple smaller towns which are near the main cities.

Let’s say my location page includes [gd_listing category-hotel] to show hotels. City-1 has some hotels listed, but SmallTown-1 doesn’t have any hotels.

If the user Changes Location to SmallTown-1, will they get notified that there are no listings? Or will they get listings for the closest city that actually does have Hotels?