Should I use my home country address or my current hotel address when applying for a Thai visa?

Well you can't use e-visa system in Thailand, so if you are in Thailand and applying that's obviously going to be a red flag. To use the e-visa system at the very beginning it specifically asks where you are physically located. If you try to put Thailand in there it will not let you proceed. You must be physically in the country where the Thai embassy you are applying at is located, and that will be one of the questions on your visa application about proof of your current location.