i) That option under paragraph text is greyed out because the text needs to meet certain minimum requirements in order for Corel to consider it paragraph format (I know but I don't understand why);
ii) With 'Hotel' text, you can type each letter and hit enter between each line. However, you are then constrained to the line spacing in the text properties (this can be adjusted but is only uselful for this one application);
iii) My method is to type each letter on its own, without worrying about spacing or alignment. Then use the alignment tool to - generally - centre them, and the distribution tool to equalize the spacing between them.
iv) When actually typing letters vertically (font is rotated 90 degrees), never, ever, ever leave the font as a font when done. Always convert the font to curves. Generally, though, if you want a lot of vertical lettering I find it's simply better to rotate your drawing and position your letters, then rotate the whole thing back to the original position.