As long as the hotel and travel time was not for work, ie you didn't require him to travel, then you don't have to compensate him. Companies are under no longer for transportation payment if that transportation is not on behalf of the company.
For example, a company MUST pay an employee if the company wishes to send the employee from the office to China to represent the company at a meeting. The company DOESN'T have to pay for the employee's transportation to the office. You don't, for example, pay for the employee's gas if he drives or for the employee's bus fees if he takes public transportation.
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