ATLANTA, March 13, 2009 - Lodgian, Inc. (NYSE Alternext US: LGN) today
announced that the audit report of its independent registered public accounting
firm, Deloitte & Touche LLP, included in the company's Annual Report
on Form 10-K for the fiscal year ended December 31, 2008 (the "Form 10-K"),
while expressing an unqualified opinion regarding the company's audited
financial statements, identified matters which raise substantial doubt
about the company's ability to continue as a going concern. The company's
announcement does not represent any changes or amendment to its 2008 financial
statements or to its Form 10-K which was filed with the Securities and
Exchange Commission on March 13, 2009.
As disclosed in the Form 10-K, the audit report raised substantial doubt
about the company's ability to continue as a going concern because approximately
$128 million of the company's mortgage debt is scheduled to mature in July
2009. This mortgage debt cannot be extended without the approval of the
loan servicers, which extension has been requested but not yet granted.
To address the pending maturities, the company is also pursuing opportunities
to refinance the maturing mortgage debt or to acquire new mortgage debt
using currently unencumbered properties. However, in light of the current
state of credit markets generally and the real estate credit markets specifically,
the company cannot currently predict the outcome of these efforts.
About Lodgian
Lodgian is one of the largest independent owners and operators of full-service
hotels in the United States. The company currently owns and manages a portfolio
of 40 hotels with 7,448 rooms located in 22 states and Canada. Of the company's
40-hotel portfolio, 20 are InterContinental Hotels Group brands (Crowne
Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 12 are
Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by
Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), three
are Hilton brands, and four are affiliated with other nationally recognized
franchisors including Starwood, Wyndham, and Carlson. One hotel is an independent,
unbranded property, which is currently closed and held for sale. For more
information about Lodgian, visit the company's website: www.lodgian.com.
Forward-Looking Statements
This press release may contain forward-looking statements
within the meaning of the federal securities laws. All statements, other
than statements of historical facts, including, among others, statements
regarding Lodgian's future financial position, business strategy, projected
performance, financing needs and ability to extend, refinance or repay
its debt, are forward-looking statements. Those statements include statements
regarding the intent, belief or current expectations of Lodgian and members
of its management team, as well as the assumptions on which such statements
are based, and generally are identified by the use of words such as "may,"
"will," "seeks," "anticipates," "believes," "estimates," "expects," "plans,"
"intends," "should" or similar expressions. Forward-looking statements
are not guarantees of future performance and involve risks and uncertainties
that actual results may differ materially from those contemplated by such
forward-looking statements. Many of these factors are beyond Lodgian's
ability to control or predict. Such factors include, but are not limited
to, the effects of regional, national and international economic conditions,
our ability to refinance mortgage debt that matures on July 1, 2009, competitive
conditions in the lodging industry and increases in room supply, requirements
of franchise agreements (including the right of franchisors to immediately
terminate their respective agreements if we breach certain provisions),
our ability to complete planned hotel dispositions, the effects of unpredictable
weather events such as hurricanes, the financial condition of the airline
industry and its impact on air travel, the effect of self-insured claims
in excess of our reserves and our ability to obtain adequate insurance
at reasonable rates, and other factors discussed under Item IA (Risk Factors)
in Lodgian's Form 10-K for the year ended December 31, 2008. We assume
no duty to update these statements.Management believes these forward-looking
statements are reasonable; however, undue reliance should not be placed
on any forward-looking statements, which are based on current expectations.
All written and oral forward-looking statements attributable to Lodgian
or persons acting on its behalf are qualified in their entirety by these
cautionary statements. Further, forward-looking statements speak only as
of the date they are made, and Lodgian undertakes no obligation to update
or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating results
over time unless otherwise required by law. |