You do not want the alternate or recovery site located in close proximity to the original site because the same event that create the situation in the first place might very well impact that site also.
From NIST: "The fixed site should be in a geographic area that is unlikely to be negatively affected by the same disaster event (e.g., weather-related impacts or power grid failure) as the organization’s primary site.
The following answers are incorrect:
It is close enough to become operational quickly. Is incorrect because it is not the best answer. You'd want the alternate site to be close but if it is too close the same event could impact that site as well.
It is close enough to serve its users. Is incorrect because it is not the best answer. You'd want the alternate site to be close to users if applicable, but if it is too close the same event could impact that site as well
It is convenient to airports and hotels. Is incorrect because it is not the best answer, it is more important that the same event does not impact the alternate site then convenience.
References:
OIG CBK Business Continuity and Disaster Recovery Planning (pages 368 - 369)
NIST document 800-34 pg 21
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