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from Lodgian for $64.9 million
ATLANTA, Ga., June 14, 2007 � Lodgian, Inc. (AMEX: LGN), one of the nation�s largest independent owners and operators of full-service hotels, today announced the sale of 16 hotels to Atlanta-based Kronos Hotels & Resorts for an aggregate sales price of $64.9 million. The purchaser has signed an agreement to buy one additional hotel, which is expected to be consummated later this year. Twenty of the 27 non-core hotels, whose planned disposition was announced in November 2006, have now been sold. Of the remaining seven non-core assets, four are currently under contract and the remaining three properties are being actively marketed. According to Ed Rohling, chief executive officer of Lodgian, �This transaction is a major part of the execution of our plan to streamline the portfolio.� The sold hotels are: 1) Holiday Inn Sheffield, AL 202 roomsTotal net sales proceeds of $62.4 million will be used for general corporate purposes. �This brings our total cash � in restricted and unrestricted funds � to more than $110 million,� said James MacLennan, Lodgian�s chief financial officer. Below is a reconciliation of GAAP net loss from operations with Adjusted
EBITDA
Net (loss)/income from operations ($10,013)Hunter Realty Associates, Inc., represented Lodgian in the transaction. EBITDA and Adjusted EBITDA EBITDA and Adjusted EBITDA are non-GAAP measures and should not be used as a substitute for measures such as net income (loss), cash flows from operating activities, or other measures computed in accordance with GAAP. The company uses EBITDA and Adjusted EBITDA to measure its performance and to assist in the assessment of hotel property values. EBITDA is also a widely used industry measure which Lodgian believes provides pertinent information to investors and is an additional indicator of the company�s operating performance. The company defines Adjusted EBITDA as EBITDA excluding the effects of certain charges such as impairment losses, gains or losses related to extinguishment of debt, casualty losses or gains related to damage to and insurance recoveries for properties damaged by hurricane, fire or flood, business interruption insurance proceeds, and minority interest adjustments related to casualty gains/losses and business interruption insurance proceeds. About Lodgian
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Lodgian
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Also See: | Lodgian Inc. Reports Significant Drop in Net Income for 3rd Qtr 2006; Will Sell 27 More of its Hotels / November 2006 |
Lodgian Initiates Acquisition Program / January 2005 |
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