Hotel Online  Special Report

 Lodgian Reports Six Hotels Sustained Hurricane Damage; 
Two, the Holiday Inn Melbourne, Fla. and Crowne
Plaza West Palm Beach, Fla., Remain Closed


ATLANTA - Oct. 5, 2004 -- Lodgian, Inc. (AMEX: LGN), one of the nation's largest independent owners and operators of full-service hotels, today announced that six of its hotels sustained damage during four hurricanes in the past six weeks. Two of the hotels are closed, three are operating in a limited capacity and one is fully operational.
The 295-room Holiday Inn Melbourne, Fla., near Cape Canaveral, in which Lodgian has a 50 percent ownership interest, suffered the greatest amount of damage and will be closed until the second quarter of 2005. The 219-room Crowne Plaza West Palm Beach, Fla., is closed and will reopen in the first quarter of 2005.

Two small hotels in Pensacola, Fla.--the 122-room Holiday Inn Express and the 152-room Holiday Inn--and the 228-room Holiday Inn Winter Haven, Fla., are still operating with a limited number of rooms out of service, and the company is aggressively moving forward with its 

Holiday Inn - Melbourne Oceanfront
2605 North Highway A1A
Indialantic (Melbourne), Florida 32903
repair  program.

The Holiday Inn Myrtle Beach, S.C. sustained less significant damage and is fully operational.

"All of the affected properties are covered by insurance, including coverage for business interruption," said W. Thomas Parrington, president and chief executive officer. "We will bear the cost of insurance deductibles, and we currently are determining repair and lost business estimates with our insurance carrier.

"During the third quarter of 2004, we experienced growth in revenue per available room from continuing operations of 3.7 percent, net of renovation and hurricane displacement of 1.3 percent and 1.2 percent, respectively," he said.

Parrington added that the company's previously announced renovation program remains on target to be completed during the first part of 2005. "We continue to move as quickly as possible to make improvements to our hotels in order to be highly competitive in their respective markets. We are beginning to see the benefit of our renovation program at properties completed earlier this year."

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.

Also See: Hurricanes Knock Out Up to 20% of Melbourne, Florida Area's 10,000 Hotel Rooms / September 2004
Lodgian Sells West Palm Beach Office Building, Retains Ownership of Connecting Crowne Plaza Hotel / December 2003

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