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 Lodgian, Inc. Sells  the 261-room Holiday Inn Grand Island (Buffalo/Niagara), New York to American Hospitality
Group, LLC for $3.35 million
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ATLANTA, Ga., July 23, 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 the 261-room Holiday Inn Grand Island (Buffalo/Niagara) in upstate New 
York, to American Hospitality Group, LLC, a private investment group, for $3.35 million.  Net proceeds from the sale, approximately $3.2 million, will be used to pay down Lodgian’s long-term debt. 

The transaction is the tenth hotel to be sold as part of a previously announced plan to divest 19 non-strategic hotels, an office building, and three parcels of land from its portfolio. In 2003, the hotel generated $0.1 million of EBITDA and a net loss of $0.1 million.
 


Holiday Inn Grand Island 
10 Whitehaven Rd
Grand Island, NY 14072
Since the program’s announcement in October 2003, Lodgian has reduced debt by approximately $38.7 million with proceeds from the sale of the properties.  “While an excellent hotel, the property did not fit our portfolio profile of upper, premium limited-service or mid-market hotels located in major suburban markets,” said Thomas Parrington, Lodgian president and CEO.  “We remain on track to complete our asset disposition program in 2004 and are in active negotiations on the remaining hotels to be sold.”

The broker for the transaction was CB Richard Ellis.

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 87 hotels with 16,366 rooms located in 30 states and Canada.  Of the company’s 87-hotel portfolio, 74 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 by Marriott and Residence Inn by Marriott), and 10 are affiliated with four other nationally recognized hospitality franchisors.  Three hotels are independent, unbranded properties. 

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
www.lodgian.com

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Also See: Lodgian's 179-room Mayfair House Hotel in Miami Sold for $14.7 million / May 2004
Lodgian Sells Four Hotels in Separate Transactions for an Aggregate Price of $11.3 million / April 2004


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