EX-99.2 3 0003.txt SLIDE PRESENTATION DATED OCTOBER 20, 2000 [Graphic Omitted] LODGIAN October 20, 2000 Annual Shareholders Meeting AGENDA -------------------------------------------------------------------------------- * Overview of Lodgian * Summary of Recent Operating Results * Key Accomplishments to Date * Renovation & Repositioning Update * Summary of Existing Strategy Who Is Lodgian? -------------------------------------------------------------------------------- [Graphic Omitted] Crowne Plaza, Albany, NY * 117 hotels * 21,922 rooms * Over 10,000 Associates * More than $1.2 Billion in assets PREMIUM NATIONAL BRANDS -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY INN HOTELS RESORTS 55.6% HOLIDAY INN SELECT(R) CROWNE PLAZA HOTELS RESORTS 9.4% MARRIOTT HOTELS RESORTS SUITES 14.5% HILTON 3.4% SHERATON HOTELS & RESORTS 3.4% OTHER 13.7% Other includes -------------- WESTIN HOTELS & RESORTS RADISSON HOTELS WORLDWIDE DOUBLETREE HOTELS SUITES RESORTS CLUBS INDEPENDENT REVPAR - 2000 -------------------------------------------------------------------------------- Increase vs. Last Year [Graphic Omitted] 1999 2000 ---- ---- Q1 43.66 44.96 Q2 52.03 53.36 Q3 53.36 56.57(est.) *Q1 and Q2 consisted of 140,000 room nights out of order due to renovation EBITDA -------------------------------------------------------------------------------- [Graphic Omitted] In millions -------- 1998 134* 1999 147 2000 150(est.) * Proforma Includes hotels sold during each year [Graphic Omitted] LODGIAN -------------------------------------------------------------------------------- Key Accomplishments Year-to-Date -------------------------------------------------------------------------------- Asset Sales -- Paying Down Debt -------------------------------------------------------------------------------- 2000 Year to date asset sales Comfort Suites - Greenville February $ 2.9m Sheraton - West Palm Beach February $ 16.5m Office Unit/Condos - Silver Springs April $ 4.5m Comfort Inn - San Antonio April $ 4.5m Holiday Inn - St. Louis West April $ 3.325m Holiday Inn Express - Nashville May $ 2.9m Sunstone - 10 Properties August $132m Holiday Inn Express - Ft. Pierce September $ 2.5m 17 TOTAL PROPERTIES $169.1m TOTAL DEBT PAID DOWN $134.0m Financial Reporting Improvements -------------------------------------------------------------------------------- * Developed and implemented over 30 new internal control policies * Reorganized accounting departments * Improved quality and quantity of accounting personnel * Substantially current in reconciling significant accounts * Systems integration substantially complete * Executing financial executive recruitment plan Timeline for Filings -------------------------------------------------------------------------------- Q1 2000 - 10Q Nov. 30, 2000 Q2 2000 - 10Q Nov. 30, 2000 Q3 2000 - 10Q Dec. 31, 2000 2000 - 10K Mar. 31, 2001 Overhead Reductions -------------------------------------------------------------------------------- * Eliminated 91 full time positions from corporate overhead * Annualized savings of approximately $6 million * Streamlined regional offices, revenue center operation, human resources, IT, among other areas Associate Satisfaction Improvements -------------------------------------------------------------------------------- Increase from 3.00 (Oct 1999) to 3.04 (June 2000) in ASI score * 93% of employees feel they are allowed to do whatever it takes to satisfy the guest * 91% of employees say they are proud to work for their respective hotels * 90% of employees say hotel management support them when they try to satisfy the guest * 80% of employees say their benefits are as good as other hotels (16% improvement from 1999) Quality Awards -------------------------------------------------------------------------------- * Bass Hotels & Resorts: * "Torchbearer" - Holiday Inn, Fairmont WV * "Quality Excellence" - Holiday Inn, Clarksburg, WV * "Most Improved GSTS Score" - Holiday Inn, Miami FL * "General Manager of the Year" - Holiday Inn, Austin TX * Marriott International: * "Highest Quality Score" - Courtyard, Bentonville AR * "Platinum Status Award" - Courtyard, Bentonville AR * "Best New Opening" - Marriott, Denver CO * Other: * "AAA - 4 Diamond Award" - Mayfair House, Coconut Grove FL [Graphic Omitted] LODGIAN -------------------------------------------------------------------------------- Renovation & Repositioning Update -------------------------------------------------------------------------------- Hotels Undergoing or Recently Received Major Renovation - 2000 -------------------------------------------------------------------------------- * Crowne Plaza, Albany NY * Holiday Inn, Lancaster PA * Holiday Inn, Belmont MD * Holiday Inn, Greentree PA * Holiday Inn, BWI Airport MD * Holiday Inn, Rolling Meadows NY * Holiday Inn, Cromwell Bridge MD * Crowne Plaza, West Palm Beach FL * Holiday Inn, Inner Harbor MD * Holiday Inn, York PA * Holiday Inn, E. Hartford CT * Holiday Inn, Jekyll Island GA * Holiday Inn, Frederick MD * Hilton Inn, Columbia MD * Holiday Inn, Glen Burnie MD * Holiday Inn Select, Niagra Falls NY * Holiday Inn, Hilton Head * Holiday Inn, Grand Island NY Capital Expenditures 2000 -------------------------------------------------------------------------------- [Graphic Omitted] $52 million spent through June $77 million estimated at year end COMFORT IN - BOSTON, MA (Before) -------------------------------------------------------------------------------- [Graphic Omitted] COURTYARD by MARRIOTT - BOSTON, MA (After) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY INN - FREDERICK, MD (Before) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY INN - FREDERICK, MD (After) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY IN BWI AIRPORT - BALTIMORE, MD (Before) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY IN BWI AIRPORT - BALTIMORE, MD (After) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY INN INNER HARBOR - BALTIMORE, MD (Before) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY INN INNER HARBOR - BALTIMORE, MD (After) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY INN - BELMONT, MD (Before) -------------------------------------------------------------------------------- [Graphic Omitted] HOLIDAY INN - BELMONT, MD (After) -------------------------------------------------------------------------------- [Graphic Omitted] CROWNE PLAZA - WEST PALM BEACH (Before) -------------------------------------------------------------------------------- [Graphic Omitted] CROWNE PLAZA - WEST PALM BEACH (After) -------------------------------------------------------------------------------- [Graphic Omitted] CROWNE PLAZA - ALBANY (Before) -------------------------------------------------------------------------------- [Graphic Omitted] CROWNE PLAZA - ALBANY (After) -------------------------------------------------------------------------------- [Graphic Omitted] [Graphic Omitted] LODGIAN -------------------------------------------------------------------------------- Summary of Existing Strategy -------------------------------------------------------------------------------- Existing Strategy -------------------------------------------------------------------------------- * Maximize Shareholder Value through Competitive Sale Process * Financial Reporting & Accounting Areas Improved * Continued Asset Sales/Debt Reduction * Continue Improving Quality of our Hotels * Internal Growth through Repositioning Efforts [Graphic Omitted]