The source for this halacha is a gemara in Menachot 44a. There Koren translates pundak as a guesthouse while artscroll translates it as an inn.
For more on this topic see Does one really have 30 days to put up a mezuza outside Eretz Israel? and the sources linked there.
R Shlomo Riskin (the Chief Rabbi of Efrat in Israel) writes indeed that a ger toshav can own land in Eretz Israel
According to Rambam [Avodat Kochavim 10:6], the very term ger toshav, stranger-resident,
defines the fact that any gentile who accepts the seven Noahide laws
of morality may be a resident in the land of Israel, may purchase or
rent land ...