ATLANTA Lodgian reported that it sold two hotels within the last week, keeping with its strategy to reduce debt through asset sales. The company sold the Westin William Penn in Pittsburgh for $63 million, recognizing a gain on the sale of approximately $23 million. In addition, the company s former Holiday Inn Birmingham, AL, was sold for $3.2 million.
Lodgian used approximately $18 million of the net proceeds from the sales to make payments toward a $35 million special amortization obligation due June 30. The balance due on that note is now less than $7 million. The remaining net proceeds were used to pay down additional debt. (2/15/01)