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 Lodgian Reports 2008 2nd Qtr Net Income of $6.37 million Compared to
Net Loss of $263 thousand in the Prior Year

Corporate Overhead Reduced $2.2 million in Quarter, 
Nine Hotels Classified as Held for Sale

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ATLANTA, Aug. 5, 2008 - Lodgian, Inc. (Amex: LGN), one of the nation's largest independent owners and operators of full-service hotels, today reported results for the 2008 second quarter ended June 30, 2008.

The "35 continuing operations hotels" comprise those Lodgian properties that are not held for sale as of June 30, 2008. A list of properties included in both continuing operations and held for sale is attached to this release.

Second Quarter 2008 Highlights for 35 Continuing Operations hotels

  • Achieved a 0.3 percent improvement in revenue per available room (RevPAR) in the second quarter of 2008 compared to 2007 second quarter, despite the displacement caused by five renovations ongoing in the quarter.
  • Increased total revenue 0.3 percent, from $66.7 million in the 2007 second quarter to $66.9 million in the second quarter of 2008.
  • Increased Adjusted EBITDA (defined below) from $15.6 million to $18.4 million, a 17.9 percent improvement.
  • Improved Adjusted EBITDA margin from 23.4 percent in 2007 second quarter to 27.5 percent in 2008 second quarter.
  • Completed renovation work at the Marriott Denver International Airport and continued renovation projects at four other hotels.
Statistics for 35 Continuing Operations Hotels
 
                                       2Q              2Q         % Change
                                      2008*           2007*
 
    Rooms revenue                   $49,364         $49,224          0.3%
    RevPAR                           $81.48          $81.27          0.3%
    Total revenue                   $66,906         $66,678          0.3%
    Income/(loss)                      $284            $142        100.0%
    EBITDA                          $12,796         $12,105          5.7%
    Adjusted EBITDA (defined
     below)                         $18,376         $15,590         17.9%
 
 
Consolidated Financial Results
 
    Income/(loss) from continuing  
operations                              $284           $142         100.0%
    Income/(loss) from 
discontinued operations           $6,083          $(405)          n/m
    Net income/(loss) attributable
to common stock                    $6,367          $(263)          n/m
    Net income/(loss) per share
attributable to common stock    $0.29         $(0.01)          n/m

*Dollars in thousands except for RevPAR and per share data
 
In this press release, Lodgian uses the term "Adjusted EBITDA" to mean earnings before interest, taxes, depreciation and amortization ("EBITDA"), but excluding the effects of the following charges: impairment losses; casualty (gains)/losses, net, for properties damaged by hurricane, fire or flood; gain/loss on extinguishment of debt; and proceeds arising from business interruption insurance claims.

Corporate Highlights:

  • Completed approved stock repurchase plan during April 2008 ($30 million in 2007/2008); outstanding shares reduced by 10 percent as a result.
  • Approved and initiated a further stock repurchase of up to $10 million before April 15, 2009; approximately 172,000 shares re-purchased under this authority as of June 30, 2008.
  • Sold two hotels for gross proceeds of $8.1 million, with net proceeds of $7.7 million used for general corporate purposes.
  • Received $6.1 million in final settlement from insurer, bringing the total received to $10.1 million, for damages sustained by Marietta Holiday Inn in January 2006, of which $5.5 million was used to release the hotel from mortgage debt; hotel subsequently re-classified as held for sale during the 2008 second quarter.
Second Quarter 2008 Results

Second quarter 2008 total revenue for 35 continuing operations hotels improved 0.3 percent to $66.9 million, compared to the same period in 2007. During the quarter, the displacement of total revenue resulting from renovations at five properties was $0.6 million. Income from continuing operations was $0.3 million, compared to $0.1 million in the 2007 second quarter.

Net income attributable to common shares was $6.4 million, or $0.29 per diluted share, compared to a net loss of $(0.3) million, or $(0.01) per diluted share in the 2007 second quarter.

EBITDA from 35 continuing operations hotels improved $0.7 million, or 5.7 percent, to $12.8 million compared to the prior year. Adjusted EBITDA for the same group of properties increased 17.9 percent, from $15.6 million in the second quarter of 2007 to $18.4 million in the 2008 second quarter, primarily due to a $2.2 million decrease in corporate overhead.

Management Comments

"Considering the current state of the industry and the economy in general, our continuing operations hotels had a positive second quarter, with RevPAR up 0.3 percent compared to the second quarter of last year," said Peter Cyrus, Lodgian interim president and chief executive officer. "For the quarter, RevPAR for the 28 continuing operations hotels not under renovation in either the 2007 or 2008 second quarter increased 1.3 percent, compared to the second quarter 2008 industry average of 1.2 percent, according to Smith Travel Research. Our hotels not under renovation also increased their RevPAR index over the competitive hotels by 1.0 percent in the quarter. A reduction of $2.2 million in overhead costs, largely driven by our corporate restructure completed in August 2007, had a significant impact on results for the quarter."

Adjusted EBITDA margins for the 35 continuing operations hotels improved 410 basis points to 27.5 percent during the second quarter of 2008 compared to 2007, primarily driven by the decrease in corporate overhead.

Asset Disposition Program

During the first quarter of this year, the company announced and commenced a program to further reposition its portfolio. A total of nine properties were identified for sale, with two hotels remaining as held for sale from those properties announced in the 2006 fourth quarter. During the 2008 second quarter, the former Holiday Inn Marietta, Ga. was reclassified as held for sale. Additionally, the Crowne Plaza Worcester, Mass. was reclassified from held for sale to continuing operations during the 2008 second quarter. An impairment charge of $4.8 million was recorded, which is included in continuing operations.

Two hotels were sold during the quarter, the 158-room Holiday Inn Frederick, Md. and the 156-room former Holiday Inn St. Paul/Arden Hills, Minn. Aggregate gross proceeds were $8.1 million, with net proceeds of $7.7 million used for general corporate purposes, including capital expenditures and share repurchases.

As of June 30, 2008, a total of nine properties were classified as held for sale. The company previously disclosed its expectations of receiving aggregate gross proceeds of approximately $94 million to $102 million, inclusive of the $8.1 million received for the two hotels sold during the 2008 second quarter and prior to the two reclassifications that also occurred during the quarter. Given current market conditions, it is difficult for the company to provide updated estimates of gross proceeds from these asset sales at this time. The company will continue to report asset dispositions as they occur.

Balance Sheet Update

As of June 30, 2008, 37 hotels were encumbered as collateral for various mortgage debt facilities totaling approximately $352 million. A summary of mortgage debt facilities is included in the supplemental information attached to this release. There are no debt maturities requiring refinancing until July 2009.

"We are beginning to examine the most appropriate and efficient strategies for execution of next summer's refinancing," said James MacLennan, executive vice president and chief financial officer. "Our objective continues to be to provide maximum flexibility to the company going forward, as well as to keep our weighted average cost of debt as low as possible. At the end of the second quarter 2008, the company had $45.1 million in cash and restricted cash on its balance sheet, and a further $11.4 million in deposits held by lenders for capital expenditures, providing flexibility as we move forward."

During the second quarter of 2008, Lodgian acquired approximately 172,000 shares of common stock at an average price of $8.51 per share, for a total of approximately $1.5 million, as part of its previously announced plan to repurchase up to $10 million of its common shares over a period ending no later than April 15, 2009. The company has acquired a total of 3,375,877 shares, or approximately 13.7 percent of common stock outstanding prior to initiating the repurchase program in May 2006, for a total cost of approximately $36.2 million as of June 30, 2008.

Conference Call
Lodgian will hold a conference call to discuss its 2008 second quarter results today, August 5, at 10 a.m. Eastern time. To hear the webcast, interested parties may visit the company's Web site at http://www.lodgian.com and click on Investor Relations and then Webcast, Q2 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Tuesday, August 12 by dialing (800) 405-2236, reference number 11117139. A replay of the conference call will be posted on Lodgian's Web site.

Non-GAAP Financial Measures

The historical non-GAAP financial measures included in this press release are reconciled to the comparable GAAP measures in the schedules attached to this press release.

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, gain/loss on extinguishment of debt, and casualty losses or gains related to damage to and insurance recoveries for properties damaged by hurricane, fire or flood.
 

LODGIAN, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
                                            June 30, 2008   December 31, 2007
                                                (Unaudited in thousands,
                                                   except share data)
                   ASSETS
    Current assets:
     Cash and cash equivalents                  $36,367           $54,389
     Cash, restricted                             8,716             8,363
     Accounts receivable (net of allowances:
      2008 - $289; 2007 - $323)                  10,690             8,794
     Insurance receivable                             -             2,254
     Inventories                                  3,010             3,097
     Prepaid expenses and other current assets   17,004            18,186
     Assets held for sale                        55,597             8,009
                                               ---------         ---------
       Total current assets                     131,384           103,092
 
 
     Property and equipment, net                448,148           499,986
     Deposits for capital expenditures           11,444            16,565
     Other assets                                 3,957             5,087
                                               ---------         ---------
                                               $594,933          $624,730
                                               =========         =========
 
            LIABILITIES AND STOCKHOLDERS' EQUITY
 
    Current liabilities:
     Accounts payable                            $8,307            $9,692
     Other accrued liabilities                   25,880            28,336
     Advance deposits                             2,069             1,683
     Insurance advances                               -             2,650
     Current portion of long-term liabilities     4,400             5,092
     Liabilities related to assets held for sale 29,765               961
                                               ---------         ---------
       Total current liabilities                 70,421            48,414
 
    Long-term liabilities                       321,428           355,728
                                               ---------         ---------
    Total liabilities                           391,849           404,142
    Commitments and contingencies (Note 8)
    Stockholders' equity:
     Common stock, $.01 par value, 60,000,000
      shares authorized; 25,071,836 and
      25,008,621 issued at June 30, 2008 and
      December 31, 2007, respectively               251               250
     Additional paid-in capital                 330,265           329,694
     Accumulated deficit                        (94,413)          (93,262)
     Accumulated other comprehensive income       3,640             4,115
     Treasury stock, at cost, 3,420,475 and
      1,709,878 shares at June 30, 2008 and
      December 31, 2007, respectively           (36,659)          (20,209)
                                               ---------         ---------
       Total stockholders' equity               203,084           220,588
                                               ---------         ---------
                                               $594,933          $624,730
                                               =========         =========
 
 
 
                          LODGIAN, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
                                        Three Months Ended   Six Months Ended
                                               June 30,          June 30,
                                            2008     2007     2008     2007
                                                (Unaudited in thousands,
                                                  except per share data)
 
    Revenues:
     Rooms                                 $49,364  $49,224  $93,212  $92,045
     Food and beverage                      15,404   15,323   27,466   27,803
     Other                                   2,138    2,131    4,200    3,799
                                           -------  -------  -------  -------
       Total revenues                       66,906   66,678  124,878  123,647
                                           -------  -------  -------  -------
 
    Direct operating expenses:
     Rooms                                  12,179   11,725   23,362   22,339
     Food and beverage                       9,851    9,918   18,670   18,753
     Other                                   1,537    1,462    2,925    2,704
                                           -------  -------  -------  -------
       Total direct operating expenses      23,567   23,105   44,957   43,796
                                           -------  -------  -------  -------
                                            43,339   43,573   79,921   79,851
 
    Other operating expenses:
     Other hotel operating costs            17,719   17,603   35,598   34,492
     Property and other taxes, insurance,
      and leases                             3,760    4,418    8,112    9,242
     Corporate and other                     3,484    5,906    9,369   11,569
     Casualty gains, net                         -        -        -   (1,867)
     Depreciation and amortization           7,989    7,098   15,458   14,075
     Impairment of long-lived assets         5,580      155    7,721      314
                                           -------  -------  -------  -------
       Total other operating expenses       38,532   35,180   76,258   67,825
                                           -------  -------  -------  -------
    Operating income                         4,807    8,393    3,663   12,026
 
    Other income (expenses):
     Interest income and other                 276      807      666    1,719
     Interest expense                       (4,775)  (6,044)  (9,947) (11,422)
     Loss on debt extinguishment                 -   (3,330)       -   (3,330)
                                            -------  -------  -------  -------
    Income (loss) before income taxes and
     minority interests                        308     (174)  (5,618)  (1,007)
    Minority interests (net of taxes, nil)       -      (56)       -     (421)
    (Provision) benefit for income taxes -
     continuing operations                     (24)     372      (87)   1,079
                                            -------  -------  -------  -------
    Income (loss) from continuing
     operations                                284      142   (5,705)    (349)
                                            -------  -------  -------  -------
 
    Discontinued operations:
     Income (loss) from discontinued
      operations before income taxes         5,986     (248)   4,629    1,961
     Benefit (provision) for income taxes -
      discontinued operations                   97     (157)     (75)  (2,032)
                                            -------  -------  -------  -------
    Income (loss) from discontinued
     operations                              6,083     (405)   4,554      (71)
                                            -------  -------  -------  -------
 
    Net income (loss) attributable to
     common stock                           $6,367    $(263) $(1,151)   $(420)
                                            =======  =======  =======  =======
 
    Basic net income (loss) per share
     attributable to common stock            $0.29   $(0.01)  $(0.05)  $(0.02)
                                            =======  =======  =======  =======
    Diluted net income (loss) per share
     attributable to common stock            $0.29   $(0.01)  $(0.05)  $(0.02)
                                            =======  =======  =======  =======
 
 
 
                         LODGIAN, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER
                                   (UNAUDITED)
 
                                                 2008              2007
                                           Second    First   Fourth    Third
                                           Quarter  Quarter  Quarter  Quarter
                                                (Unaudited in thousands)
     Revenues:
      Rooms                                $49,364  $43,848  $40,730  $46,942
      Food and beverage                     15,404   12,062   14,429   12,857
      Other                                  2,138    2,062    1,819    2,134
                                           ----------------------------------
                                            66,906   57,972   56,978   61,933
                                           ----------------------------------
     Direct operating expenses:
      Rooms                                 12,179   11,183   10,497   11,997
      Food and beverage                      9,851    8,819    9,054    9,432
      Other                                  1,537    1,388    1,288    1,512
                                           ----------------------------------
                                            23,567   21,390   20,839   22,941
                                           ----------------------------------
                                            43,339   36,582   36,139   38,992
    Other operating expenses:
     Other hotel operating costs            17,719   17,879   16,285   17,847
     Property and other taxes, insurance
      and leases                             3,760    4,352    4,334    4,087
     Corporate and other                     3,484    5,885    4,248    5,575
     Casualty (gain) losses, net                 -        -        -        -
     Restructuring                               -        -      (25)   1,258
     Depreciation and amortization           7,989    7,469    7,464    7,226
     Impairment of long-lived assets         5,580    2,141      796      512
                                           ----------------------------------
     Other operating expenses               38,532   37,726   33,102   36,505
                                           ----------------------------------
    Operating income (loss)                  4,807   (1,144)   3,037    2,487
 
     Other income (expenses):
      Business interruption insurance
       proceeds                                  -        -        -        -
      Interest income and other                276      390      912    1,312
      Other interest expense                (4,775)  (5,172)  (5,790)  (5,958)
      Loss on debt extinguishment                -        -        -        -
                                           ----------------------------------
    Income (loss) before income taxes and
     minority interests                        308   (5,926)  (1,841)  (2,159)
    Minority interests (net of taxes, nil)       -        -        -        -
                                           ----------------------------------
     Income (loss) before income taxes -
      continuing operations                    308   (5,926)  (1,841)  (2,159)
    (Provision) benefit for income taxes -
     continuing operations                     (24)     (63)  (2,262)   1,027
                                           ----------------------------------
    Income (loss) from continuing
     operations                                284   (5,989)  (4,103)  (1,132)
                                           ----------------------------------
     Discontinued operations:
     Income (loss) from discontinued
      operations before income taxes         5,986   (1,357)  (5,824)   1,818
     Benefit (provision) for income taxes       97     (172)   1,854     (639)
                                           ----------------------------------
    Income (loss) from discontinued
     operations                              6,083   (1,529)  (3,970)   1,179
                                           ----------------------------------
    Net income (loss) attributable to
     common stock                           $6,367  $(7,518) $(8,073)     $47
                                           ==================================
 
 
                                                2007               2006
                                          Second    First    Fourth    Third
                                          Quarter  Quarter  Quarter   Quarter
 
     Revenues:
      Rooms                               $49,224  $42,821   $39,510  $43,757
      Food and beverage                    15,323   12,480    13,670   11,530
      Other                                 2,131    1,668     1,775    1,836
                                           -----------------------------------
                                           66,678   56,969    54,955   57,123
                                           -----------------------------------
     Direct operating expenses:
      Rooms                                11,725   10,614    10,481   11,304
      Food and beverage                     9,918    8,835     9,161    8,607
      Other                                 1,462    1,242     1,275    1,369
                                           -----------------------------------
                                           23,105   20,691    20,917   21,280
                                           -----------------------------------
                                           43,573   36,278    34,038   35,843
    Other operating expenses:
     Other hotel operating costs           17,603   16,889    15,433   16,227
     Property and other taxes, insurance
      and leases                            4,418    4,824     4,578    5,008
     Corporate and other                    5,906    5,663     4,936    5,586
     Casualty (gain) losses, net                -   (1,867)        -   (3,085)
     Restructuring                              -        -         -        -
     Depreciation and amortization          7,098    6,977     6,972    7,070
     Impairment of long-lived assets          155      159       147      281
                                           -----------------------------------
     Other operating expenses              35,180   32,645    32,066   31,087
                                           -----------------------------------
    Operating income (loss)                 8,393    3,633     1,972    4,756
 
    Other income (expenses):
     Business interruption insurance
      proceeds                                  -        -       (47)   2,447
     Interest income and other                807      912       651      770
     Other interest expense                (6,044)  (5,378)   (5,452)  (5,632)
     Loss on debt extinguishment           (3,330)       -         -        -
                                           -----------------------------------
    Income (loss) before income taxes and
     minority interests                      (174)    (833)   (2,876)   2,341
    Minority interests (net of taxes, nil)    (56)    (365)      335      100
                                           -----------------------------------
     Income (loss) before income taxes -
      continuing operations                  (230)  (1,198)   (2,541)   2,441
    (Provision) benefit for income taxes
     - continuing operations                  372      707    (9,154)  (1,314)
                                           -----------------------------------
    Income (loss) from continuing
     operations                               142     (491)  (11,695)   1,127
                                           -----------------------------------
     Discontinued operations:
      Income (loss) from discontinued
       operations before income taxes        (248)   2,209   (13,527)  (2,034)
      Benefit (provision) for income taxes   (157)  (1,875)    4,509    1,069
                                           -----------------------------------
     Income (loss) from discontinued
      operations                             (405)     334    (9,018)    (965)
                                           -----------------------------------
     Net income (loss) attributable to
      common stock                          $(263)   $(157) $(20,713)    $162
                                           ===================================
 
 
 
                          LODGIAN, INC. AND SUBSIDIARIES
         Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
          with Income/(Loss) from Continuing Operations (a GAAP measure)
                                   (UNAUDITED)
 
                                         Three Months Ended   Six Months Ended
                                               June 30,          June 30,
                                             2008     2007     2008     2007
                                           ($ in thousands)  ($ in thousands)
    Continuing operations:
    Income (loss) from continuing
     operations                               $284     $142  $(5,705)   $(349)
    Depreciation and amortization            7,989    7,098   15,458   14,075
    Interest income                           (276)    (807)    (666)  (1,719)
    Interest expense                         4,775    6,044    9,947   11,422
    Provision (benefit) for income taxes        24     (372)      87   (1,079)
                                          --------  -------  -------  -------
    EBITDA from continuing operations      $12,796  $12,105  $19,121  $22,350
                                          --------  -------  -------  -------
    Adjustments to EBITDA:
    Impairment of long-lived assets         $5,580     $155   $7,721     $314
    Casualty (gains) losses, net                $-       $-       $-  $(1,867)
    (Gain) loss on debt extinguishment           -    3,330        -    3,330
                                          --------  -------  -------  -------
    Adjusted EBITDA from continuing
     operations                            $18,376  $15,590  $26,842  $24,127
                                          --------  -------  -------  -------
 
 
 
                                Lodgian, Inc.
                 Summary of Mortgage Debt as of June 30, 2008
                               (in $ thousands)
 
                      Number of      Debt      Maturity            Interest
                       Hotels       Balance     Date               rate
 
    Mortgage Debt
    IXIS                 3         $ 21,127    Mar-09(1)     LIBOR plus 2.95%,
                                                              capped at 8.45%
    IXIS                 1           18,647    Dec-08(1)     LIBOR plus 2.90%,
                                                              capped at 8.40%
    Goldman Sachs       10          130,000    May-09(2)     LIBOR plus 1.50%;
                                                              capped at 8.50%
    Merrill Lynch
     Mortgage Lending,
     Inc. - Fixed #1     4           40,016    Jul-09              6.58%
    Merrill Lynch
     Mortgage Lending,
     Inc. - Fixed #3     8           61,106    Jul-09              6.58%
    Merrill Lynch
     Mortgage Lending,
     Inc. - Fixed #4     7           45,795    Jul-09              6.58%
    Wachovia- Pinehurst  1            3,021    Jun-10              5.78%
    Wachovia- Phoenix
     West                1            9,574    Jan-11              6.03%
    Wachovia- Palm
     Desert              1            5,824    Feb-11              6.04%
    Wachovia- Worcester  1           16,666    Feb-11              6.04%
                        ---        --------   -------       ------------------
       Total Mortgage
        Debt            37         $351,776                        5.43%(3)
                        ===        ========
 
    (1)  Two one-year extension options are available beyond the maturity date
    (2)  Three one-year extension options are available beyond the maturity
          date
    (3)  Annual effective weighted average cost of debt at June 30, 2008.
 
 
 
                                Lodgian, Inc.
                   2008 Supplemental Operating Information
 
                                            Three Months
                                           Ended June 30,
    Hotel  Room
    Count  Count                           2008      2007  Increase(Decrease)
    35     6,658  All Continuing
                  Operations
                  Occupancy                75.4%      73.7%             2.3%
                  ADR                    $108.00    $110.29  ($2.29)   (2.1)%
                  RevPAR                  $81.48     $81.27   $0.21     0.3%
                  RevPAR Index            100.0%     100.0%             0.0%
 
    28   5,267    Continuing Operations
                   less hotels under
                   renovation in the
                   second quarter 2007 and
                   2008
                  Occupancy                76.4%      74.1%             3.1%
                  ADR                    $105.97    $107.79  ($1.82)   (1.7)%
                  RevPAR                  $80.94     $79.89   $1.05     1.3%
                  RevPAR Index             99.0%      98.0%             1.0%
 
    12   1,397    Marriott Hotels
                  Occupancy                77.8%      76.0%             2.4%
                  ADR                    $112.51    $114.51  ($2.00)   (1.7)%
                  RevPAR                  $87.54     $87.02   $0.52     0.6%
                  RevPAR Index            111.5%     113.6%            (1.8)%
 
    2      396    Hilton Hotels
                  Occupancy                72.7%      72.3%              0.6%
                  ADR                    $114.69    $114.07   $0.62      0.5%
                  RevPAR                  $83.42     $82.43   $0.99      1.2%
                  RevPAR Index             99.7%      98.8%              0.9%
 
    17   3,990    IHG Hotels
                  Occupancy                75.9%      74.4%              2.0%
                  ADR                    $108.05    $111.03  ($2.98)    (2.7)%
                  RevPAR                  $82.04     $82.63  ($0.59)    (0.7)%
                  RevPAR Index             99.2%      98.8%              0.4%
 
    4      875    Other Brands
                  Occupancy                70.7%      67.3%              5.1%
                  ADR                     $96.74     $97.11  ($0.37)    (0.4)%
                  RevPAR                  $68.36     $65.37   $2.99      4.6%
                  RevPAR Index             84.6%      82.7%              2.3%
 
 
 
    Lodgian, Inc.
    2008 Supplemental Operating Information
 
    Hotel  Room                             Six Months
    Count  Count                            Ended June 30,
                                           2008      2007  Increase(Decrease)
    35     6,658  All Continuing
                   Operations
                   Occupancy               70.9%      69.4%              2.1%
                   ADR                   $108.55    $110.10  ($1.55)   (1.4)%
                   RevPAR                 $76.92     $76.40   $0.52      0.7%
                   RevPAR Index            98.9%      97.9%              1.0%
 
    26     4,711   Continuing Operations
                    less hotels under
                    renovation in the
                    first and second
                    quarters 2007 and
                    2008
                   Occupancy               72.5%      70.2%              3.2%
                   ADR                   $105.48    $106.35  ($0.87)     0.8%
                   RevPAR                 $76.44     $74.65   $1.79      2.4%
                   RevPAR Index            99.2%      96.9%              2.4%
 
    12     1,397   Marriott Hotels
                   Occupancy               72.0%      71.0%              1.4%
                   ADR                   $113.45    $114.58  ($1.13)   (1.0)%
                   RevPAR                 $81.67     $81.34   $0.33      0.4%
                   RevPAR Index           110.8%     113.5%            (2.4)%
 
    2        396   Hilton Hotels
                   Occupancy               65.8%      64.4%              2.2%
                   ADR                   $112.59    $112.97  ($0.38)   (0.3)%
                   RevPAR                 $74.12     $72.80   $1.32      1.8%
                   RevPAR Index            97.5%      94.7%              3.0%
 
    17     3,990   IHG Hotels
                   Occupancy               71.4%      70.3%              1.6%
                   ADR                   $108.35    $109.73  ($1.38)   (1.3)%
                   RevPAR                 $77.36     $77.12   $0.24      0.3%
                   RevPAR Index            98.8%      96.8%              2.1%
 
    4        875   Other Brands
                   Occupancy               68.9%      65.0%              6.0%
                   ADR                    $99.56    $102.82  ($3.26)   (3.2)%
                   RevPAR                 $68.60     $66.83   $1.77      2.6%
                   RevPAR Index            81.5%      80.4%              1.4%
 
 
 
    Lodgian, Inc.
    Continuing Operations Hotel Portfolio as of June 30, 2008
 
 
          Location                      Brand                       Rooms
 
          Bentonville, AR        Courtyard by Marriott                90
          Little Rock, AR        Residence Inn by Marriott            96
          Phoenix, AZ            Crowne Plaza                        299
          Phoenix, AZ            Radisson                            159
          Palm Desert, CA        Holiday Inn Express                 129
          Denver, CO             Marriott                            238
          Melbourne, FL          Crowne Plaza                        270
          West Palm Beach, FL    Crowne Plaza                        219
          Atlanta, GA            Courtyard by Marriott               181
          Ft. Wayne, IN          Hilton                              244
          Florence, KY           Courtyard by Marriott                78
          Paducah, KY            Courtyard by Marriott               100
          Kenner, LA             Radisson                            244
          Lafayette, LA          Courtyard by Marriott                90
          Dedham, MA             Residence Inn by Marriott            81
          Worcester, MA          Crowne Plaza                        243
          Baltimore (BWI
           Airport), MD          Holiday Inn                         260
          Baltimore (Inner
           Harbor), MD           Holiday Inn                         375
          Columbia, MD           Hilton                              152
          Silver Spring, MD      Crowne Plaza                        231
          Pinehurst, NC          Springhill Suites by Marriott       107
          Merrimack, NH          Fairfield Inn by Marriott           115
          Santa Fe, NM           Holiday Inn                         130
          Albany, NY             Crowne Plaza                        384
          Strongsville, OH       Holiday Inn Select                  303
          Tulsa, OK              Courtyard by Marriott               122
          Monroeville, PA        Holiday Inn                         187
          Philadelphia, PA       Four Points by Sheraton             190
          Pittsburgh -
           Washington, PA        Holiday Inn                         138
          Pittsburgh, PA         Crowne Plaza                        193
          Hilton Head, SC        Holiday Inn                         202
          Myrtle Beach, SC       Holiday Inn                         133
          Abilene, TX            Courtyard by Marriott                99
          Dallas (DFW Airport),
           TX                    Wyndham                             282
          Houston, TX            Crowne Plaza                        294
                                                                 -------
                                                                   6,658
                                                                 =======
 
 
 
    Lodgian, Inc.
    Assets Held for Sale
 
          Location                       Brand                     Rooms
 
          Phoenix, AZ            Holiday Inn                         144
          Frisco, CO             Holiday Inn                         217
          East Hartford, CT      Holiday Inn                         130
          Marietta, GA           Independent                         193
          Glen Burnie, MD        Holiday Inn                         127
          Towson, MD             Holiday Inn                         139
          Troy, MI               Hilton                              191
          Memphis, TN            Independent                         105
          Windsor,
           Ontario, Canada       Holiday Inn Select                  214
 
 

About Lodgian 
Lodgian is one of the largest independent owners and operators of full- service hotels in the United States. The company currently owns and manages a portfolio of 44 hotels with 8,118 rooms located in 23 states and Canada. Of the company's 44-hotel portfolio, 23 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 12 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), three are Hilton brands, and four are affiliated with nationally recognized franchisors including Starwood, Wyndham, and Carlson. Two hotels are independent, unbranded properties, both of which are currently closed and held for sale. For more information about Lodgian, visit the company's Web site: http://www.lodgian.com.

Forward-Looking Statements
This press release includes forward-looking statements related to Lodgian's operations that are based on management's current expectations, estimates and projections. These statements are not guarantees of future performance and actual results could differ materially. The words "guidance," "may," "should," "expect," "believe," "anticipate," "project," "estimate," "plan," and similar expressions are intended to identify forward-looking statements. Certain factors are not within the company's control and readers are cautioned not to put undue reliance on forward-looking statements. These statements involve risks and uncertainties including, but not limited to, the company's ability to generate sufficient working capital from operations and other risks detailed from time to time in the company's SEC reports, including the company's annual report on Form 10-K for the year ended December 31, 2007. The company undertakes no obligations to update events to reflect changed assumptions, the occurrence of unanticipated events or changes to future results over time.

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Contact:

Lodgian, Inc.
Debi Neary Ethridge
Vice President, Finance & Investor Relations
+1-404-365-2719
dethridge@lodgian.com
http://www.lodgian.com
 

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Also See: Lodgian Shuttering the French Quarter Suites Hotel in Memphis for Good; Hotel Had Steadily Declined with Little Upkeep / July 2008

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