Under the sale agreement, Krasnapolsky acquires the real estate and operations of four hotels in Brussels, including the Crowne Plaza Hotel with 358 rooms, the Tulip Inn Delta with 246 rooms, the Arenberg Hotel with 155 rooms, and the Diplomat Hotel with 68 rooms.  Also included in the transaction were the Royal Astor Hotel in Ostend with 95 rooms and the Holiday Inn (formerly the Galaxy Hotel) in Amsterdam with 270 rooms.

The only remaining non-U.S. hotel which Lodgian still owns is the Holiday Inn Select in Windsor, Ontario with 214 rooms.

Robert S. Cole, Lodgian�s President and Chief Executive Officer remarked: �The sale of these six hotels and divestiture of Lodgian�s ownership interest in the European joint venture with Lehman Brothers allows us to better focus on further enhancing the operational performance of our domestic U.S. portfolio.  We have already made significant strides over the last two quarters toward achieving our stated long-term vision of becoming a recognized leader and one of the premier owner/operators of hotels in the hospitality industry.  Specifically, this is consistent with our strategy of improving our capital structure and selectively selling non-core assets.  Also, we remain on track to completing the final phase of our $200 million renovation and repositioning program by early next year, under which Lodgian will have either renovated or newly developed nearly 90 percent of the hotels in its portfolio within the past five years.�

About Lodgian

Lodgian, Inc. owns or manages a portfolio of 137 hotels with nearly 26,000 rooms in 35 states and Canada.  The hotels are primarily full service, providing food and beverage service as well as lodging and meeting facilities.  Substantially all of Lodgian�s hotels are affiliated with nationally recognized hospitality brands such as Holiday Inn, Crowne Plaza, Marriott, Sheraton, Hilton, Doubletree and Westin.

Forward-Looking Statements
Note:  Statements in this press release which are not strictly historical are �forward-looking� statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks, which may cause the company�s actual results in the future to differ materially from expected results.  These risks include, among others, competition within the lodging and contract service industries; the relationship between supply and demand for hotel rooms; the effects of economic conditions; issues associated with the ongoing integration of the former Servico, Inc. and Impac Hotel Group, the acquisition and renovation of existing hotels and the development of new hotels; operating risks; the cyclical nature of the lodging industry; risks associated with the dependence on franchisers of the company�s lodging properties; and the availability of capital to finance planned growth, as described in the company�s filings with the Securities and Exchange Commission.