If someone dies in a room, we get rid of the body and then get the room booked again ASAP.
I work at a hostel in London and we once had a guy die in one of the dorms. The worst part was that no one realized for a couple of days until people started complaining about a smell. Long story short, housekeeping found him, his body was taken away, the bed was changed, and someone else was checked in later that same afternoon.