|ATLANTA — June 24, 1999 — Lodgian, Inc., (NYSE: LOD), one
of the nation’s largest owners and operators of hotels, today reported
the sale of six hotels in Europe to Krasnapolsky Hotels & Restaurants
N.V. Lodgian received a total of $8.1 million for its 50 percent
ownership interest in European Hotel Ventures Belgium S.C., the Company’s
joint venture with Lehman Brothers, Inc. through which it previously co-owned
the six hotels.
Under the sale agreement, Krasnapolsky acquires the real estate and operations of four hotels in Brussels, including the Crowne Plaza Hotel with 358 rooms, the Tulip Inn Delta with 246 rooms, the Arenberg Hotel with 155 rooms, and the Diplomat Hotel with 68 rooms. Also included in the transaction were the Royal Astor Hotel in Ostend with 95 rooms and the Holiday Inn (formerly the Galaxy Hotel) in Amsterdam with 270 rooms.
The only remaining non-U.S. hotel which Lodgian still owns is the Holiday Inn Select in Windsor, Ontario with 214 rooms.
Robert S. Cole, Lodgian’s President and Chief Executive Officer remarked: “The sale of these six hotels and divestiture of Lodgian’s ownership interest in the European joint venture with Lehman Brothers allows us to better focus on further enhancing the operational performance of our domestic U.S. portfolio. We have already made significant strides over the last two quarters toward achieving our stated long-term vision of becoming a recognized leader and one of the premier owner/operators of hotels in the hospitality industry. Specifically, this is consistent with our strategy of improving our capital structure and selectively selling non-core assets. Also, we remain on track to completing the final phase of our $200 million renovation and repositioning program by early next year, under which Lodgian will have either renovated or newly developed nearly 90 percent of the hotels in its portfolio within the past five years.”
Lodgian, Inc. owns or manages a portfolio of 137 hotels with nearly 26,000 rooms in 35 states and Canada. The hotels are primarily full service, providing food and beverage service as well as lodging and meeting facilities. Substantially all of Lodgian’s hotels are affiliated with nationally recognized hospitality brands such as Holiday Inn, Crowne Plaza, Marriott, Sheraton, Hilton, Doubletree and Westin.
|Also See:||Revenue, EBITDA, Revpar, and Income all Show Strong Gains for Lodgian First Quarter / May 1999|