Aggregate Price of $9.2 million
|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:
This press release includes forward-looking statements related to Lodgian’s operations that are based on management’s current expectations, estimates and projections.
Vice President, Finance & Investor Relations
|Also See:||Lodgian Sells West Palm Beach Office Building, Retains Ownership of Connecting Crowne Plaza Hotel / December 2003|
|Lodgian Promotes Linda Philp to VP Chief Accounting Officer, Deborah Ethridge to VP, Finance and Investor Relations / November 2003|