Surely the important thing about the tags in Lou's texts is that
they have all been inserted for one and the same reason.
(And we know that for certain; there is no need to surmise.)
They are a form of markup, therefore must be preserved.
Since they are all there for the same reason, whatever format is
chosen must allow common processing for all occurrences.
So the indications are for something like
<homograph type=placename> Bath </>