HOT: EXECUTIVE UPDATE CALL

02/17/15 09:28AM EST

CONF CALL

  • $8-10m charge as a result of CEO transition and fulfillment of Fritz's agreement. 
  • No disagreements in corporate strategy. The change is on execution.
  • Confident 2015 expectations will be met
  • Will sell $3bn assets by 2016
  • Accelerate pipeline/footprint growth and will manage balance sheet
  • Affirm 1Q and 2015 FY EBITDA guidance and  $300-$350m share repurchase and $250m in quarterly dividends in 2015.

Q & A

  • Decision was made over the weekend
  • Formed a search committee. No timeline set.
  • #1 goal:  drive top-line growth 
  • Did you explore other strategic alternatives for the company? 
    • Want to deliver value to shareholders
  • Could do better:  Net rooms growth for 2015; 2015 EBITDA targets put out
  • Not as strong in mid-priced point segment.  Aloft/Four Points are a step in that direction but their competitors have a much bigger presence.
  • Time share spinoff nothing to do with this development
  • Aron:  Will keep outside directorship at NCLH
  • Will evaluate possible HQ move to India in the next few days
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