When on business, it is always more convienient to stay at a hotel

An employee has no obligation to disclose that they have friends/relatives living in the ciity that they are travelling on business to.

What if an employee was going on a business trip to Mumbai, India and instead of staying at a hotel decides to stay with a friend who is down on his luck and lives in the slums (poor living conditions, long commute in crowded trains, and lack of high speed internet access) and looses his laptop containing confidential company information? Or the conditions are so bad the the employee can't do any work after hour (which he may have been able to if he stayed at a hotel)?

On the other hand, if the employee had stayed in the compound of a wealthy relative complete with car and drive, then it would be a different storey.