He gets out of the car, tucks the pistol in his belt under his shirt and enters the hotel, which is an old two-story building.

The hallway is strangely similar to Pete's vision upstairs at Andy's. Fred comes to the door numbered 25, looks at his key which says "25" and unlocks the door and enters.

Rammstein
ein Mensch brennt...

As Fred drives away, a HAND appears in our window foreground. The hand moves the window curtain further to one side. The camera pulls back to reveal it as the hand of the Mystery Man. The Mystery Man leans fully into the frame and watches Fred drive off down the Lost Highway as day breaks.