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1. DiamondRock completes $1.5 billion refinancing
Hotel real estate investment trust DiamondRock Hospitality has completed its $1.5 billion refinancing under its senior unsecured credit facilities, reports CoStar News Hotels' Trevor Simpson. Doing so expanded DiamondRock's previous credit facility of $1.2 billion and extended its maturity schedule.
The credit facility now includes a $400 million revolving credit facility that matures in January 2031 inclusive of two, six-month extension options, a $300 million term loan that matures in January 2030 and a $300 million term loan that matures in January 2030 inclusive of two, six-month extension options.
The REIT is using its new credit facility to repay three hotel mortgage loans that matured or will mature in 2025.
2. Trade policy uncertainty hampers global business travel
The latest edition of the Global Business Travel Association's annual report found that global business travel spending grew 10% in 2024 to $1.47 trillion, down from earlier projections of $1.48 trillion. The group forecasts slower growth this year of 7% due to trade policy uncertainty.
A global survey found 80% of respondents are traveling as much or more than in the past with an average trip spend of $1,128. Seventy-four percent took between one and five trips over the past year. Eighty-six percent rated their trips as worthwhile for achieving their business objectives.
3. Hilton's revenue per available room dipped in second quarter
In its second-quarter earnings release, Hilton reported revenue per available room dipped by 0.5% year over year to $121.79 due to an occupancy decline of 0.5 percentage points to 74.4% while average daily rate increased by 0.2% to $163.78.
Hilton opened 221 hotels with 26,100 rooms during the quarter, resulting in 22,600 net room additions. It added 36,200 rooms to its development pipeline, which stands at 3,636 hotels with 510,000 rooms across 128 countries and territories as of June 30.
Hilton reported a net income of $422 million and adjusted earnings before interest, taxes, depreciation and amortization of more than $1 billion for the quarter.
For coverage of Hilton's earnings call, click here.
4. US Labor Department proposes further deregulation of workplaces
The U.S. Department of Labor intends to change or remove more than 60 workplace regulations it's deeming "obsolete," the Associated Press reports. They include removing the federal minimum wage of $7.25 per hour for home healthcare workers as well as removing a requirement for adequate lighting at construction sites and limiting the Occupational Safety and Health Administration's use of the general duty clause.
“The Department of Labor is proud to lead the way by eliminating unnecessary regulations that stifle growth and limit opportunity,” Secretary of Labor Lori Chavez-DeRemer said in a statement.
“People are at very great risk of dying on the job already,” said Rebecca Reindel, the AFL-CIO union’s occupational safety and health director. “This is something that is only going to make the problem worse.”
5. US reaches trade deal with Japan
Through a social media post, President Donald Trump shared that the U.S. and Japan have reached a new trade agreement, the Wall Street Journal reports.
Japan will invest $500 billion in the U.S., which will receive 90% of the profits from these investments. Further details about this arrangement were not provided in the social media post.
As a result, the U.S. will lower its tariffs on Japanese cars to 15% from 25%. There was no change on the tariff for steel, which remains at 50%.