Learn Arabic (Modern Standard): الفندق على اليمين.

In Arabic, simple sentences describing what or where something is don't use a verb for "to be" in the present tense. You simply state the subject (الفندق, the hotel) followed immediately by its location (على اليمين, on the right).

How do you pronounce على اليمين when spoken naturally?

It sounds like "alal-yameen". The word على ends in a vowel sound, and the "a" sound in the Arabic word for "the" (ال) drops out when it connects to a vowel right before it. So, the two words link smoothly together without a break.

Does على always translate to "on"?

على generally means "on" or "upon." Luckily, Arabic matches English perfectly in this phrase: you say "on the right" (على اليمين) and "on the left" (على اليسار). However, keep in mind that prepositions don't always translate word-for-word, and you'll sometimes see على used where English might use "at" or "to."

Since we are learning the vocative particle (يا), how would I use it with this sentence to talk to a taxi driver?

You wouldn't use يا with the hotel itself, because you are talking about it, not to it. But you can use it to get the driver's attention first! You would put يا plus a respectful title at the beginning, such as يا أستاذ، الفندق على اليمين (O sir, the hotel is on the right).