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Lodgian Sells Four Hotels in Separate Transactions
for an Aggregate Price of $11.3 million
ATLANTA, Ga., April 23, 2004 ó Lodgian, Inc. (AMEX: LGN), one of the nationís largest independent owners and operators of full-service hotels, today announced that since February 19, 2004, it has sold four hotels in separate transactions for an aggregate price of $11.3 million, of which $9.3 million was used to reduce the companyís debt. Two of the four hotels were sold in the first quarter and two properties have been sold in the second quarter to date, with the net proceeds to be recorded in the appropriate quarters. In 2003, the four hotels had EBITDA of $(0.9) million and a net loss of $5.1 million. Including these sales, the company has divested eight hotels and an office building as part of its previously announced plan to sell 19 non-strategic hotels, an office building and three parcels of land. Proceeds from the combined sales to date have been used to reduce debt by $21.8 million.

"We have an additional seven hotels and the three land parcels under contract," said Thomas Parrington, Lodgian president and chief executive officer. "We are on target to complete the disposition program by year end." 

The Sold Hotels

The 214-room Holiday Inn, Ft. Mitchell, Ky., was sold in February 2004 for $2.3 million, of which $2.2 million was used to reduce debt. In 2003, the hotel generated $(0.2) million of EBITDA and a net loss of $1.1 million. 

The 214-room Holiday Inn Express, Pensacola, Fla., was sold in March 2004 for $3.0 million, of which $2.7 million was used to reduce debt. In 2003, the hotel generated $0.3 million of EBITDA and a net loss of $1.1 million.

The 243-room Downtown Plaza, in Cincinnati, Ohio was sold in April 2004 for $1.2 million, of which $1.1 million was used to reduce debt. In 2003, the hotel generated $(0.5) million of EBITDA and a net loss of $1.8 million.

The 154-room Courtyard by Marriott, Revere, Mass., was sold in April 2004 for $4.8 million, of which $3.3 million were used to reduce debt. In 2003, the hotel generated $(0.5) million of EBITDA and a net loss of $1.1 million.

Below is a reconciliation of unaudited 2003 net loss with EBITDA:
 

(in thousands)
Ft. Mitchell
Pensacola
Cincinnati
Revere
Total
Net loss
($1,123)
($1,052)
($1,769)
($1,132)
($5,076)
Depreciation and amortization
136 
135 
197 
286 
754 
Impairment of long lived assets
679 
1,096 
976 
2,753 
Interest expense
138 
136 
113 
323 
710 
EBITDA
($170)
$315 
($483)
($521)
($859)

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 89 hotels with 16,806 rooms located in 30 states and Canada. Of the companyís 89-hotel portfolio, 75 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. Four hotels are independent, unbranded properties. For more information about Lodgian, visit the companyís Web site: www.lodgian.com.

This press release includes forward-looking statements related to Lodgianís operations that are based on managementís current expectations, estimates and projections. These statements are not guarantees of future performance and actual results could differ materially. 


 
 
Contact:
Debi Ethridge
Vice President, Finance & Investor Relations
dethridge@lodgian.com
(404) 365-2719
Also See: Lodgian Sales Three Holiday Inns for Aggregate Price of $9.2 million / February 2004
Lodgian Sells West Palm Beach Office Building, Retains Ownership of Connecting Crowne Plaza Hotel /
December 2003


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