The setting is in the Watch app. It’s Passcode > Unlock with iPhone. It used to be pretty hit or miss, but with the new OSes it’s worked really consistently.
And I’m not really suggesting anything about the WiFi. I know remarkably little about the network infrastructure in foreign hotels and embassies. Just that there are mechanism in iOS that could feasibly make this possible, rather than immediately jumping to a Turkish surveillance cover up.
You know, Occam’s razor and all that jazz.