It is good news that he has no clue about hostel business - if he knows at least that much. It´ll keep him from telling you what to do all the time.
Figure out what sort of deal you want before looking at it from his perspective. Do you just want his money and building and be responsible for the entire risk yourself? In this case, try to get a deal where you only rent the building and pay interest for his investment.
Or do you want to split the risk between yourself and him? In this case, make a joint venture. You would both posess 50% of the company. The company would still pay rent and interest to him and whatever is left is profit. Split that 50/50 or 30/70 or whatever.
Or do you want no risk at all? It´ll be entirely his costel and he employs you as manager, maybe with a deal in which you would still get a part of the profit (as a yearly bonus).