estaban pernoctando
Imperfecto progresivo para el sujeto ellos/ellas/ustedes del verbo pernoctar.

pernoctar

En todo caso era comprensible que hubiese sido guiada a seguir expandiendo mis actividades en Kyoto en una manera ascendente, ya que numerosas almas ancestrales mías estaban pernoctando en la ciudad capital antigua.
Anyway it was understandable that I had been guided to keep on expanding my activities in Kyoto in an ascending manner, as numerous souls of my ancestors were sleeping at the ancient capital city.
Palabra del día
el patinaje