As a hotel you cannot take that risk. He burns down the hotel as an unregistered guest, who know what might happen.
That's why I said I would have let him register as a tenant and simply rented out the room.
Also, I kinda doubt that the person in question has nowhere else to go. Not a single hotel employee is crazy enough to forfeit their actual apartment because they got one room via their employer. Exactly because of a situation like this. What, was the person in question homeless before the hotel hired them?