Indeed it was, this is pretty darn good travelling matte. Just amazing. When you see it in the movie you can see the hills are painted, as they look a little too lush green, but never do you look at the motel and think it's not there. Psycho II is full of matte paintings.
One thing I really love is at the beginning, when it shows the shower scene from Psycho and the tracking shot that ends looking out of the motel room window up at the house, the camera fades to black, and then fades up in colour, on a matte painting where the real house just was. Wonderful.
Gee, can you tell I'm a fan?