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Aggregate Price of $9.2 million |
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| ATLANTA, Ga., February 19, 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, in separate transactions, three Holiday
Inn hotels. The sales were part of the company�s previously announced
plan to sell 19 non-strategic hotels. The hotels were sold for an
aggregate price of $9.2 million. The company has used a significant
portion of the net proceeds, together with proceeds from the November 2003
sale of the Holiday Inn-North Miami, to reduce debt by more than $10.0
million. Together, these four hotels had EBITDA of $0.7 million and
produced a net loss of $0.4 million for 2003.
�We are making steady progress on our asset disposition plan and are in active negotiations on a number of other hotel transactions,� said W. Thomas Parrington, president and chief executive officer. �We are hopeful that we can complete the sale of the remaining 15 non- strategic assets by year-end 2004. As indications of economic improvement continue, hotel real estate prices are firming and the number of active buyers is growing. �We also are continuing with renovations at our other hotels in accordance with our previously announced plans to keep them in competitive condition within their respective markets.� The Sold Hotels The Holiday Inn Market Center in Dallas, Texas, was sold in January 2004 for $2.6 million, of which $1.9 million was used by the company to reduce debt and $600,000 was used for general corporate purposes. In 2003, the hotel generated ($28,000) of EBITDA and a net loss of ($873,000). The Holiday Inn Baltimore West in Maryland was sold in February 2004 for $3.6 million. The company reduced debt by $2.6 million, and $900,000 was used for general corporate purposes. In 2003, the hotel generated $265,000 of EBITDA and a net loss of ($70,000). The Holiday Inn Syracuse�Fairgrounds Area in New York was sold in February 2004 for $3.0 million, all of which was used to reduce debt. In 2003, the hotel generated $356,000 of EBITDA and net income of $38,000. The Company has already reported the 2003 sale of Holiday Inn North Miami in Florida for $3.3 million, following which the company used $3.1 million of net proceeds to reduce debt. The hotel generated $132,000 of EBITDA and net income of $553,000 for the 2003 period through the date of the sale. Below is a reconciliation of GAAP net (loss)/income with EBITDA:
About Lodgian
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 [email protected] (404) 365-2719 |