Lodgian Sells Off Four More Hotels

ATLANTA— In its continuing divestiture plan, Lodgian, Inc. has sold four hotels in separate transactions for an aggregate price of $11.3 million, of which $9.3 million was used to reduce the company’s debt. Two of the four hotels were sold in the first quarter and two properties have been sold in the second quarter to date, with the net proceeds to be recorded in the appropriate quarters. In 2003, the four hotels had EBITDA of $0.9 million and a net loss of $5.1 million. Including these sales, the company has divested eight hotels and an office building as part of its plan to sell 19 non-strategic hotels, an office building and three parcels of land. Proceeds from the combined sales to date have been used to reduce debt by $21.8 million. “We have an additional seven hotels and the three land parcels under contract,” said Thomas Parrington, Lodgian president/CEO. “We are on target to complete the disposition program by year[‘s] end.” Sold were: * The 214-room Holiday Inn, Ft. Mitchell, KY, in February for $2.3 million; $2.2 million was used to reduce debt. In 2003, the hotel generated $0.2 million of EBITDA and a net loss of $1.1 million; * The 214-room Holiday Inn Express, Pensacola, FL, was sold in March for $3 million; $2.7 million was used to reduce debt. In 2003, the hotel generated $0.3 million of EBITDA and a net loss of $1.1 million. * The 243-room Downtown Plaza, in Cincinnati, OH, was sold in April for $1.2 million; $1.1 million was used to reduce debt. In 2003, the hotel generated $0.5 million of EBITDA and a net loss of $1.8 million. * The 154-room Courtyard by Marriott, Revere, MA, was sold in April for $4.8 million; $3.3 million were used to reduce debt. In 2003, the hotel generated $0.5 million of EBITDA and a net loss of $1.1 million.