Hotel Online  Special Report

Lodgian Reports on Impact of Hurricane Frances to Five
Florida Properties; Three Hotels Are Fully Open,
Two Sustain Water Damage


ATLANTA, Ga., September 13, 2004—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, today announced that its five Florida properties have experienced damage ranging from minor to significant due to Hurricane Frances.

“We, along with many other hotel companies, were affected by the one-two punch of Hurricanes Charley and Frances,” said W. Thomas Parrington, president and chief executive officer.  “Fortunately, no staff or guests were injured during the course of these storms.  With a third major storm, Hurricane Ivan, now headed toward the Florida coast, it is difficult to accurately gauge the effect of these storms on revenues and earnings during the third quarter.  We intend to provide an update after we determine the effect, if any, of Hurricane Ivan.”

Three hotels suffered limited damage and are fully open and operating, including the Holiday Inn Express Pensacola, the Holiday Inn Pensacola and the Holiday Inn Winter Haven. 

The Crowne Plaza West Palm Beach and Holiday Inn Melbourne experienced more significant damage, including extensive water penetration. 

The 219-room Crowne Plaza West Palm Beach remains partially open and is expected to fully open by the end of September. 

The 295-room Holiday Inn Melbourne has been closed since September 1, 2004, when a mandatory emergency evacuation order was issued for the area.  “We cannot determine a reopening date at this time, but will proceed as quickly as possible,” Parrington added.

Teams of company executives and contractors are on site at the two properties and have begun repairs.  It is expected, pending a final opinion from the insurance adjusters, that repairs at the two hotels will exceed the insurance deductibles. 

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. 

This press release includes forward-looking statements related to Lodgian’s operations that are based on management’s current expectations, estimates and projections. 

Lodgian, Inc.
Debi Ethridge
Vice President, Finance & Investor Relations
(404) 365-2719
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