Danny asks Halorrann about his fear (previous frame) and in response the frame changes to one we haven't seen in this sequence, with knives hanging point down above Danny's head (SWORD OF DAMOCLES). Hallorann replies 'No. Scared of nothing here.' Taken literally, Hallorann is not scared of the hotel. He is scared of the nothing that is here, the illusions. This idea will be developed more in a moment when they talk about room 237. Hallorann goes on to explain the hotel has 'something about it that's like a shining.' At this point there has been enough evidence that Hallorann is a conjuring of the hotel, so we can take it on good authority from him that the hotel does not shine. It 'has something about it' that shines.

HALLORAN No, I'm scared of nothing here. It's just that you know some places are like people, some shine and some don't. I guess you could say the Overlook Hotel here has something about it that's like shining.
DANNY Is there something bad here?
HALLORAN Well, you know Doc, when something happens it can leave a trace of itself behind... say like is someone burns toast. Well, maybe things that happened... leave other kinds of traces behind.