St. Louis-Airport for $3.5 million
Ga., July 12, 2005—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest
independent owners and operators of full-service hotels, today announced
that it sold the 390-room Holiday Inn St. Louis-Airport in Missouri, to
an undisclosed buyer for $3.5 million. All of the net proceeds will
be used for general corporate purposes. For the twelve months ended
May 31, 2005, the hotel produced negative Adjusted EBITDA (a non-GAAP financial
measure) of $(417,000) and a net loss from operations of $(996,000).
The sale is part of the company’s previously announced plan to dispose of non-core properties from its hotel portfolio. Lodgian has sold 17 hotels, two land parcels and an office building, and reduced its debt by $56.0 million since the program was announced in 2003. Jones Lang LaSalle Hotels-Select Service Division brokered the sale of the property.
“We continue to make steady progress on our planned disposition program,” said W. Thomas Parrington, president and chief executive officer. “Five non-core properties and a land parcel remain earmarked for sale, and we expect to bring this program to completion by year end. Renovation projects continue at many of our core properties. The quality of our portfolio has improved significantly over the past two years, and when we complete these two programs, we will be highly competitive in our respective markets.”
Below is a reconciliation of GAAP net loss from operations with Adjusted EBITDA (a non-GAAP financial measure) for the twelve months ended May 31, 2005 for the Holiday Inn St. Louis-Airport, Mo.:
Net loss from operations $(996,000)
Adjusted EBITDA $(417,000)
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 81 hotels with 15,081 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:||Lodgian Sells Four Hotels in Separate Transactions for an Aggregate Price of $11.3 million / April 2004|
|Lodgian Outlines 2005 Renovation Plans; Completes 16 Hotel Renovations in 2004 / January 2005|