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Lodgian Sales Three Holiday Inns for
Aggregate Price of $9.2 million

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ATLANTA, Ga., February 19, 2004 — Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, today announced that it has sold, in separate transactions, three Holiday Inn hotels.  The sales were part of the company’s previously announced plan to sell 19 non-strategic hotels.  The hotels were sold for an aggregate price of $9.2 million.  The company has used a significant portion of the net proceeds, together with proceeds from the November 2003 sale of the Holiday Inn-North Miami, to reduce debt by more than $10.0 million.  Together, these four hotels had EBITDA of $0.7 million and produced a net loss of $0.4 million for 2003.

“We are making steady progress on our asset disposition plan and are in active negotiations on a number of other hotel transactions,” said W. Thomas Parrington, president and chief executive officer.  “We are hopeful that we can complete the sale of the remaining 15 non- strategic assets by year-end 2004.  As indications of economic improvement continue, hotel real estate prices are firming and the number of active buyers is growing.

“We also are continuing with renovations at our other hotels in accordance with our previously announced plans to keep them in competitive condition within their respective markets.”

The Sold Hotels

The Holiday Inn Market Center in Dallas, Texas, was sold in January 2004 for $2.6 million, of which $1.9 million was used by the company to reduce debt and $600,000 was used for general corporate purposes.  In 2003, the hotel generated ($28,000) of EBITDA and a net loss of ($873,000).

The Holiday Inn Baltimore West in Maryland was sold in February 2004 for $3.6 million.  The company reduced debt by $2.6 million, and $900,000 was used for general corporate purposes.  In 2003, the hotel generated $265,000 of EBITDA and a net loss of ($70,000).

The Holiday Inn Syracuse–Fairgrounds Area in New York was sold in February 2004 for $3.0 million, all of which was used to reduce debt.  In 2003, the hotel generated $356,000 of EBITDA and net income of $38,000.

The Company has already reported the 2003 sale of Holiday Inn North Miami in Florida for $3.3 million, following which the company used $3.1 million of net proceeds to reduce debt.  The hotel generated $132,000 of EBITDA and net income of $553,000 for the 2003 period through the date of the sale. 

Below is a reconciliation of GAAP net (loss)/income with EBITDA:
 

(in thousands)                     Market         Baltimore                     North
                                         Center          West        Syracuse     Miami
                                           ------           ---------        --------         -----
Net (loss)/income                    ($873)     ($70)         $38              $553
Depreciation and amortization     170       221          197               166
Impairment of long lived assets    590         0             0                    0
Interest expense                        70        91            112                   63
(Gain)/loss on asset dispositions     8        22            7                (651)
Franchise taxes                          6         0               3                      0
                                            ------           ---------    --------            -----

EBITDA                                ($28)     $265         $356          $132
                                     ======   ========= ========   =====

About Lodgian
Lodgian is one of the largest independent owners and operators of full-service hotels in the United States. The company currently manages a portfolio of 93 hotels with 17,631 rooms located in 30 states and Canada.  Of the company’s 93-hotel portfolio, 78 are under the InterContinental Hotels Group (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express) and Marriott brands (Courtyard by Marriott, Fairfield Inn and Residence Inns), and 10 are affiliated with four other nationally recognized hospitality franchisors.  Five hotels are independent, unbranded properties.  For more information about Lodgian, visit the company’s Web site: www.lodgian.com.

This press release includes forward-looking statements related to Lodgian’s operations that are based on management’s current expectations, estimates and projections. 


 
Contact:
Debi Ethridge
Vice President, Finance & Investor Relations
dethridge@lodgian.com
(404) 365-2719
Also See: Lodgian Sells West Palm Beach Office Building, Retains Ownership of Connecting Crowne Plaza Hotel / December 2003
Lodgian Promotes Linda Philp to VP Chief Accounting Officer, Deborah Ethridge to VP, Finance and Investor Relations / November 2003


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