Sep. 26--Atlanta-based Lodgian Inc. has cut jobs and the workweek at some of its hotels and reservations offices. 

Lodgian said the measures, which will reduce payroll costs by 30 percent, were taken to offset lost revenue from the Sept. 11 terrorist attacks. 

The company said Tuesday the layoffs and reduced hours were the equivalent of 1,600 full-time employees. It was unclear how many employees were laid off, and company officials could not be reached for comment. 

"We decisively reacted to the current operating environment and resulting lost revenues from the recent unanticipated drop in travel," said Chief Executive Officer Thomas Arasi. "Although unpredictable, we hope that occupancy and revenues will recover in the near future, and we will be able to re-employ many of the affected employees." 

Lodgian is among several hotel companies nationwide that are closely watching costs in the wake of declining occupancies. 

Hotel occupancy has fallen in the United States after the terrorist attacks against the World Trade Center and Pentagon created fears of traveling. 

PricewaterhouseCoopers estimates the attacks may cause hotel industry revenue per available room, an indicator of demand, to experience the biggest annual decline in 33 years. 

Other hotels have instituted hiring freezes and reduced work schedules. 

"The outlook continues to be bleak as far as the near term goes," said Mark Woodworth, executive managing director Hospitality Research Group of PKF Consulting. "The real crunch for most businesses, particuarly hotels, is their cash situation. It's become very critical, and cutting back jobs is one way they're trying to deal with this issue." 

Woodworth said many companies are being proactive and operating under the worst-case scenario. 

He said indications are that cancellations are leveling off. 

"The attitude has been let's expect the worse and prepare for it," he said. 

Lodgian's stock closed at 18 cents Tuesday, unchanged. Lodgian owns or manages 106 hotels under the Marriott, Crowne Plaza Hilton and Radisson brands. 

-----To see more of The Atlanta Journal and Constitution, or to subscribe to the newspaper, go to http://www.ajc.com 

(c) 2001, The Atlanta Journal and Constitution. Distributed by Knight Ridder/Tribune Business News. LOD, MAR, HLT,