@DonP look.
Imagine the OP wants to get cities inside another function.
So he have to repeat his old approach but with your DAO as well.
function getHotels($state) {
require('/path/to/dao.php');
$dbObj = new dao();
$cities = $dbObj->getCities('State');
// use $cities to get hotels or whatever.
}
In fact you improved nothing in regard of the accessibility of the DB driver.
Not to mention that stuffing all your database -related methods in one single class sounds a bit awkward.