for an Aggregate Price of $11.3 million
|ATLANTA, Ga., April 23, 2004 ó Lodgian, Inc. (AMEX: LGN), one of the
nationís largest independent owners and operators of full-service hotels,
today announced that since February 19, 2004, it has sold four hotels in
separate transactions for an aggregate price of $11.3 million, of which
$9.3 million was used to reduce the companyís debt. Two of the four hotels
were sold in the first quarter and two properties have been sold in the
second quarter to date, with the net proceeds to be recorded in the appropriate
quarters. In 2003, the four hotels had EBITDA of $(0.9) million and a net
loss of $5.1 million. Including these sales, the company has divested eight
hotels and an office building as part of its previously announced plan
to sell 19 non-strategic hotels, an office building and three parcels of
land. Proceeds from the combined sales to date have been used to reduce
debt by $21.8 million.
"We have an additional seven hotels and the three land parcels under contract," said Thomas Parrington, Lodgian president and chief executive officer. "We are on target to complete the disposition program by year end."
The Sold Hotels
The 214-room Holiday Inn, Ft. Mitchell, Ky., was sold in February 2004 for $2.3 million, of which $2.2 million was used to reduce debt. In 2003, the hotel generated $(0.2) million of EBITDA and a net loss of $1.1 million.
The 214-room Holiday Inn Express, Pensacola, Fla., was sold in March 2004 for $3.0 million, of which $2.7 million was used to reduce debt. In 2003, the hotel generated $0.3 million of EBITDA and a net loss of $1.1 million.
The 243-room Downtown Plaza, in Cincinnati, Ohio was sold in April 2004 for $1.2 million, of which $1.1 million was used to reduce debt. In 2003, the hotel generated $(0.5) million of EBITDA and a net loss of $1.8 million.
The 154-room Courtyard by Marriott, Revere, Mass., was sold in April 2004 for $4.8 million, of which $3.3 million were used to reduce debt. In 2003, the hotel generated $(0.5) million of EBITDA and a net loss of $1.1 million.
Below is a reconciliation of unaudited 2003 net loss with EBITDA:
This press release includes forward-looking statements related to Lodgianís operations that are based on managementís current expectations, estimates and projections. These statements are not guarantees of future performance and actual results could differ materially.
Vice President, Finance & Investor Relations
|Also See:||Lodgian Sales Three Holiday Inns for Aggregate Price of $9.2 million / February 2004|
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