ATLANTA, Ga., July 23, 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 the 261-room Holiday Inn Grand Island
(Buffalo/Niagara) in upstate New
| York, to American Hospitality Group,
LLC, a private investment group, for $3.35 million. Net proceeds
from the sale, approximately $3.2 million, will be used to pay down Lodgian�s
long-term debt.
The transaction is the tenth hotel to be sold as part of a previously
announced plan to divest 19 non-strategic hotels, an office building, and
three parcels of land from its portfolio. In 2003, the hotel generated
$0.1 million of EBITDA and a net loss of $0.1 million.
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Holiday Inn Grand Island
10 Whitehaven Rd
Grand Island, NY 14072 |
Since the program�s announcement in October 2003, Lodgian has reduced debt
by approximately $38.7 million with proceeds from the sale of the properties.
�While an excellent hotel, the property did not fit our portfolio profile
of upper, premium limited-service or mid-market hotels located in major
suburban markets,� said Thomas Parrington, Lodgian president and CEO.
�We remain on track to complete our asset disposition program in 2004 and
are in active negotiations on the remaining hotels to be sold.�
The broker for the transaction was CB Richard Ellis.
About Lodgian
Lodgian is one of the largest independent owners and operators of full-service
hotels in the United States. The company currently manages a portfolio
of 87 hotels with 16,366 rooms located in 30 states and Canada. Of
the company�s 87-hotel portfolio, 74 are under the InterContinental Hotels
Group (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express)
and Marriott brands (Courtyard by Marriott, Fairfield Inn by Marriott and
Residence Inn by Marriott), and 10 are affiliated with four other nationally
recognized hospitality franchisors. Three hotels are independent,
unbranded properties.
This press release includes forward-looking statements related to Lodgian�s
operations that are based on management�s current expectations, estimates
and projections.
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