We have major difficulties with the inn next-door to us.. They have a nice restaurant, but we've stopped referring guests there because the two owners constantly quiz every patron as to where they're staying, and when they find out they're staying with us, they'll pepper them with "you know, we have rooms too" and "would you like to tour our rooms after dinner" and even "next time you come to visit, we'll give you a special deal and charge you less than the folks next-door."
We know all this because 6 guests in the last 12 months have come back and reported all this to us, many saying it made them feel quite uncomfortable.
We plan to have a blunt discussion with them the next time we see them, basically saying "we've stopped referring guests to eat with you, because so many have come back saying they felt uncomfortable there." When they ask why, we plan to report what they've told us verbatim.
I have no problem discussing why your place/my place may be a better fit, but only if the question is solicited by the guest. I've had nice chats with some of their guests walking in the town, and have never tried to steal them away.
There's class, and then there's lack of it..