If you are going to apply a “Hero Hunting” item to find new heroes in your Inn, do not waste it on a small Inn with only 1 or 2 heroes. The higher the level of your inn the more heroes that will be available.
A level 2 inn will have 2 heroes. A level 4 inn will have 4 heroes.
When you apply hero hunting all the heroes in the inn will be replaced with new heroes. If you do a hero hunting with a level 4 inn you have twice as many chances to find a good hero as an inn that is level 2. (You’ll get 4 new heroes to pick from instead of 2.) If you use a hero hunting with a level 8 inn you have even more chances. You have an opportunity to get 8 new heroes at once.