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-- Purchases SpringHill Suites by Marriott in Pinehurst, N.C.; Begins Renovation Program -- |
| ATLANTA, GA (Jan. 18, 2005) -- Lodgian, Inc. (AMEX: LGN)
today announced that it has acquired the 107-room SpringHill Suites by
Marriott in Pinehurst, N.C. It is Lodgian's first acquisition since the
company's inception in 1998. The hotel will undertake an immediate $0.8
million renovation. "We now are at a point where we can turn our attention to growth through acquisitions," said W. Thomas Parrington, Lodgian's president and chief executive officer. "We expect to wrap up our three-year, $110-million-plus renovation program in the first half of 2005, and have completed approximately 70 percent of our divestment program of non-strategic assets."  Parrington said the company will ramp up its acquisition program slowly. "We are patient buyers and will seek properties that we believe will be immediately accretive to earnings. We do not anticipate investing in new development over the near term." The company's acquisition profile is primarily upscale, premium-branded, limited-service hotels, with 100 to 250 rooms, in strong suburban and urban markets. To a lesser extent, the company will seek out smaller upper upscale, full-service hotels, as well. Renovation Plans Located at 10024 US Highway 15/501, the three-story, 107-suite SpringHill Suites Pinehurst/Southern Pines will receive a complete guestroom renovation, including new bedding, carpet, televisions, and seating. In addition, the hotel will be adding a sundries market and business library, and the public areas will receive new carpet and furniture. The property features studio suites with separate sleeping, eating, and working areas, and provides 25 percent more space than a traditional hotel room. Other hotel amenities include approximately 400 square feet of meeting space, complimentary on-site parking and continental Suite Seasons Breakfast(R) buffet, express checkout and pet-care services. In addition, rooms feature pantry space with a small refrigerator, microwave and free high-speed Internet access. The property, which is on the border between Pinehurst and Southern Pines resorts, is conveniently located near world-renowned golf courses and numerous shopping centers and restaurants. The area is host to several major sporting activities a year, including the upcoming 2005 Men's U.S. Open Golf Tournament and the 2007 Women's U.S. Open Golf Tournament. "Our company is taking advantage of the recent surge in market activity," Parrington said. "This destination-resort property fits nicely into our portfolio profile. With a strategic capital infusion, we believe the hotel has significant upside potential." 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 86 hotels with 16,196 rooms located in 30 states and Canada. Of the company's 86-hotel portfolio, 73 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 franchises. Three hotels are independent, unbranded properties. For more information about Lodgian, visit the company's Web site: www.lodgian.com. |
| Contact: Lodgian, Inc. Debi Ethridge, 404-365-2719 [email protected] or Media: Daly Gray Public Relations Jerry Daly/Patrick Daly Telephone: 703-435-6293 [email protected] |