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They definitely owe for actual damages and I agree what was done was completely inexcusable.
That said, the hotel manager does not seem all that ethical to me either.
It does not make sense that he would lose his contract on the property over property condition just because of this one incident. If the owners were really interested in extending his lease, one would have to presume that they- like any good business person- would not let an isolated incident like this ruin the deal.
There is more than meets the eye here- whether the property had other serious issues or the owners had other reasons for wanting to terminate the contract.
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