This is a movie, about a girl who is reading a book, written by the author who is telling the story, of the story he heard many years ago, from the proprietor of the titular pink hotel.
I can understand why some would not understand what's the fuss about the film. But the first line itself says much about stories, whether written or narrated verbally, transcending time.
And stories being stories, have a life of their own once they are told. The caricature of characters, the stunny visuals of settings where the story took place, reflected the imagery world that is created in the world of storytelling - colours are brighter, movements are exaggerated, everything becomes larger than life.
But aren't that how any stories play out in your mind whenever you hear them? :)