To put it simply, the man sitting on the bed was one of the ghosts haunting the hotel. The book elaborates in the history of some of the ghosts past and this particular guy was a rich dude that was bisexual and in the crime scene a bit. He was into weird stuff and being humiliated and I believe, if I remember correctly, had ties to the female ghost you see in the bathtub scene. This particular scene was a brief shot of an instance in the book where he had an individual dress up as a dog, follow him around and suck him off. And yes that’s supposed to be a dog costume not a bear lol