It is tolerable only when the situation is relevant in the present; it wouldn't work when reporting a distant past event. The choice between "there" and "here" in #2 depends on the broader context.
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Haddie 1) The hotel authorities told the callers that he wasn't staying there any longer.2) The hotel authorities told the callers that he isn't staying here any longer.In reported speech, the first sentence is usually correct according to the rules of direct and indirect speech. Is there ever a situation where the second might be consi