8-K

United States
Securities And Exchange Commission

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 5, 2009

Lodgian, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	001-14537	52-2093696
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

3445 Peachtree Road, N.E., Suite 700
Atlanta, GA 30326
(Address of principal executive offices)

(404) 364-9400
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 5, 2009, Lodgian, Inc. issued a press release announcing its results for the quarter ended September 30, 2009. A copy of this press release is attached as Exhibit 99.1 and is incorporated by reference into this item.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

The information in this Current Report on Form 8-K, including the exhibit, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Furthermore, the information in this Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933 regardless of any general incorporation language in such filings.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Lodgian, Inc. Dated: November 5, 2009
By:	/s/ JAMES A. MACLENNAN
	James A. MacLennan
	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

Exhibit Index

Exhibit No.	Description
99.1	Press Release of Lodgian, Inc. dated November 5, 2009.

EX-99.1

Exhibit 99.1

For Immediate Release
Contact:
Debi Neary Ethridge
Vice President, Finance & Investor Relations
dethridge@lodgian.com
(404) 365-2719

Lodgian Reports 2009 Third Quarter Results

     ATLANTA, Ga., November 5, 2009—Lodgian, Inc. (NYSE Alternext US:LGN), one of the nation’s largest independent hotel owners and operators, today reported results for the 2009 third quarter ended September 30, 2009.

     The company will host a 10 a.m. Eastern time conference call today to discuss results for the 2009 third quarter.

     The “35 continuing operations hotels” comprise those Lodgian properties that were not held for sale as of September 30, 2009. Lists of properties, both continuing operations and held for sale, are attached to this press release.

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Statistics for 35 Continuing Operations Hotels

	3Q			3Q
	2009*			2008*			% Change
Rooms revenue	$	38,095		$	46,679			-18.4	%
RevPAR	$	62.32		$	76.24			-18.3	%
Total revenue	$	50,592		$	61,400			-17.6	%
Impairment of long-lived assets	$	(34,165	)	$	(1,393	)		n/m
(Loss)/income from continuing operations	$	(39,789	)	$	(2,259	)		n/m
EBITDA	$	(27,128	)	$	10,362			n/m
Adjusted EBITDA (defined below)	$	7,075		$	11,698			-39.5	%
Consolidated Financial Results
(Loss)/income from continuing operations	$	(39,789	)	$	(2,259	)		n/m
Income/(loss) from discontinued operations	$	2,999		$	(3,924	)		n/m
Net (loss) attributable to common stock	$	(36,201	)	$	(6,183	)		n/m
Net (loss) per share attributable to common stock	$	(1.70	)	$	(0.29	)		n/m

* Dollars in thousands except for RevPAR and per share data.

In this press release, Lodgian uses the term “Adjusted EBITDA” to mean earnings before interest, taxes, depreciation and amortization (“EBITDA”), but excluding the effects of the following charges: impairment losses; restructuring expenses; gains/losses on debt extinguishment; and casualty (gains)/losses, net, for properties damaged by events such as hurricane, fire or flood. A reconciliation of EBITDA and Adjusted EBITDA to (loss)/income from continuing operations is included in the tables that accompany this press release.

Third Quarter 2009 Results

     Third quarter 2009 total revenue for continuing operations declined 17.6 percent to $50.6 million, compared to the same period in 2008. Loss from continuing operations was $(39.8) million in the 2009 third quarter, compared to a loss of $(2.3) million in the 2008 third quarter. The 2009 third quarter loss was driven primarily by a $34.2 million impairment charge largely related to seven hotels which are expected to be returned to their lenders. Six of these hotels are expected to be returned to the lender after unsuccessful negotiations to extend and modify the Merrill Lynch Fixed Rate Pool 3 loan agreement.

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     Net loss attributable to common shares was $(36.2) million, or $(1.70) per diluted share in the 2009 third quarter, compared to a net loss of $(6.2) million, or $(0.29) per diluted share in the 2008 third quarter. The 2009 third quarter net loss includes total impairment charges of $35.4 million in both continuing operations and discontinued operations, including the $34.2 million impairment charge previously mentioned.

     EBITDA from continuing operations declined from $10.4 million in the 2008 third quarter to $(27.1) million, including impairment charges. Adjusted EBITDA for the same group of properties, which excludes the effect of impairment charges, decreased 39.5 percent, from $11.7 million in the 2008 third quarter to $7.1 million in the 2009 third quarter. Adjusted EBITDA margins for the continuing operations hotels decreased by 510 basis points to 14.0 percent during the 2009 third quarter compared to the 2008 third quarter due to a significant decline in revenues, despite on-going cost reduction efforts.

Management Comments

     “Our results, and the hotel industry as a whole, continue to be impacted by the effects of the global economic slowdown,” said Dan Ellis, Lodgian president and chief executive officer. “Every hotel is competing hard for every piece of business. We have been successful in both finding new business and attracting previous accounts back to our hotels. Nonetheless, it remains a fiercely competitive environment. We gave up a little market share in the third quarter, but our continuing operations portfolio still retains a slight edge over its competitive set in revenue per available room (RevPAR), with our RevPAR Index at 100.6.

     “We continue our strategic review of the portfolio, evaluating each of our hotels in terms of debt coverage, equity and long-term strategic value, with the goal of further strengthening the company,” he said.

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Asset Disposition Program and Balance Sheet Update

     As of November 1, 2009, one property remained classified as held for sale. Subsequent to the close of the 2009 third quarter, the company sold the Ramada Plaza in Troy, Mich. for gross proceeds of $3.0 million. The company provided seller financing in the amount of $1.75 million, and net proceeds were used for general corporate purposes.

     During the 2009 third quarter, the company surrendered control of the Holiday Inn in Phoenix, Ariz. to a court-appointed receiver. As a result, all assets and liabilities were excluded from the company’s consolidated balance sheet as of September 30, 2009. The company does not believe the limited recourse provisions of the loan secured by the Holiday Inn will be triggered by this transaction.

     As of September 30, 2009, 33 hotels were encumbered as collateral for various mortgage debt facilities totaling approximately $310.5 million. A summary of mortgage debt facilities is included in the supplemental information attached to this release.

     The company recently reported that, in conjunction with the development of a strategic plan, it has stopped servicing the debt secured by the Crowne Plaza in Worcester, Mass., and intends to convey the hotel to the lender in full satisfaction of the debt, which had a principal balance of $16.3 million as of September 30, 2009. On a trailing twelve month basis, the cash flow from the hotel was insufficient to service the debt on the property. The company is now in default on this loan, and the lender has accelerated repayment of the loan. The company intends to cooperate with the lender in transferring this hotel to the lender’s control.

     As previously disclosed, the Merrill Lynch Fixed Rate Pool 3 securitized mortgage debt, with a principal balance of $45.5 million, matured on October 1, 2009 and is now in default. The company had been in discussions with the special servicer regarding extension and modification

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of the loan; however, no agreement has been reached at this time. The company is now in discussions with the special servicer regarding returning the six hotels to the lender in full satisfaction of the debt. This mortgage indebtedness is non-recourse to the company except in certain limited circumstances, which the company believes do not apply in this case, and is not cross-collateralized with any of the company’s other indebtedness.

Conference Call

     Lodgian will hold a conference call to discuss its 2009 third quarter results today, November 5, 2009 at 10 a.m. Eastern time. To hear the webcast, interested parties may visit the company’s website at www.lodgian.com and click on Investor Relations and then Webcast, Q3 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Thursday, November 12, 2009 by dialing (800) 406-7325, reference number 4173127. A replay of the conference call will be posted on Lodgian’s website.

Non-GAAP Financial Measures

     The historical non-GAAP financial measures included in this press release are reconciled to the comparable GAAP measures in the schedules attached to this press release.

EBITDA and Adjusted EBITDA

     EBITDA and Adjusted EBITDA are non-GAAP measures and should not be used as a substitute for measures such as net income (loss), cash flows from operating activities, or other measures computed in accordance with GAAP. The company uses EBITDA and Adjusted EBITDA to measure its performance and to assist in the assessment of hotel property values. EBITDA is also a widely used industry measure which Lodgian believes provides pertinent information to investors and is an additional indicator of the company’s operating performance.

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     The company defines Adjusted EBITDA as EBITDA excluding the effects of certain charges such as impairment losses; restructuring expenses; gains/losses on debt extinguishment; and casualty losses or gains related to damage to and insurance recoveries for properties damaged by events such as hurricane, fire or flood.

RevPAR Index

     RevPAR Index is computed by dividing the company’s RevPAR for a particular period by the market’s RevPAR over the same period. To derive the market’s RevPAR, we identify the hotels that the company considers to be competing hotels for each market in which the company operates. The group of hotels in each market is known as the competitive set. We then obtain RevPAR for each competitive set from Smith Travel Research, a leading provider of lodging industry data. We believe that RevPAR Index is a meaningful indicator of our performance because it measures our hotels in relation to their competitors. We use RevPAR Index to determine if our hotels are increasing market share, which is one of our key business objectives.

About Lodgian

     Lodgian is one of the nation’s largest independent hotel owners and operators. The company currently owns and manages a portfolio of 36 hotels with 6,749 rooms located in 21 states. Of the company’s 36-hotel portfolio, 17 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, and Holiday Inn Express), 12 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), two are Hilton brands, and four are affiliated with other nationally recognized franchisors including Starwood, Wyndham and Carlson. One hotel is an independent, unbranded property, which is currently closed and held for sale. For more information about Lodgian, visit the company’s website: www.lodgian.com.

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Forward-Looking Statements

     This press release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding Lodgian’s negotiations with special servicers and lenders, optional maturity extensions, property dispositions, future financial position, business strategy, projected performance and financing needs, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Lodgian and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company’s ability to control or predict. Such factors include, but are not limited to, the effects of regional, national and international economic conditions, our ability to refinance or extend maturing mortgage indebtedness, competitive conditions in the lodging industry and increases in room supply, requirements of franchise agreements (including the right of franchisors to immediately terminate their respective agreements if we breach certain provisions), our ability to complete planned hotel dispositions, the effects of unpredictable weather events such as hurricanes, the financial condition of the airline industry and its impact on air travel, the effect of self-insured claims in excess of our reserves and our ability to obtain adequate insurance at reasonable rates, and other factors discussed under Item IA (Risk Factors) in Lodgian’s Form 10-K for the year ended December 31, 2008, and as updated in our Forms 10-Q for the quarters ended March 31 and June 30, 2009. We assume no duty to update these statements.

     Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to Lodgian or persons acting on its behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.

# # #

LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

	September 30, 2009			December 31, 2008
	($ in thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents	$	24,647		$	20,454
Cash, restricted		9,419			8,179
Accounts receivable (net of allowances: 2009 - $257; 2008 - $263)		7,035			7,115
Inventories		3,100			2,983
Prepaid expenses and other current assets		15,342			21,257
Assets held for sale		4,554			33,021
Total current assets		64,097			93,009
Property and equipment, net		403,815			447,366
Deposits for capital expenditures		5,586			11,408
Other assets		4,893			3,631
	$	478,391		$	555,414
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,152		$	7,897
Other accrued liabilities		23,674			22,897
Advance deposits		1,619			1,293
Current portion of long-term liabilities		102,614			124,955
Liabilities related to assets held for sale		607			16,167
Total current liabilities		133,666			173,209
Long-term liabilities		208,935			194,800
Total liabilities		342,601			368,009
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value, 60,000,000 shares authorized; 25,148,819 and 25,075,837 issued at September 30, 2009 and December 31, 2008, respectively		252			251
Additional paid-in capital		331,601			330,785
Accumulated deficit		(155,344	)		(105,246	)
Accumulated other comprehensive income		64			1,262
Treasury stock, at cost, 3,827,603 and 3,806,000 at September 30, 2009 and December 31, 2008, respectively		(39,692	)		(39,647	)
Total stockholders’ equity attributable to common stock		136,881			187,405
Noncontrolling interest		(1,091	)		—
Total stockholders’ equity		135,790			187,405
	$	478,391		$	555,414

LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
	($ in thousands, except share data)						($ in thousands, except share data)
Revenues:
Rooms	$	38,095		$	46,679		$	114,415		$	139,891
Food and beverage		10,469			12,545			33,852			40,011
Other		2,028			2,176			5,689			6,376
Total revenues		50,592			61,400			153,956			186,278
Direct operating expenses:
Rooms		10,952			12,200			31,818			35,562
Food and beverage		7,784			9,070			23,706			27,740
Other		1,264			1,548			3,881			4,473
Total direct operating expenses		20,000			22,818			59,405			67,775
		30,592			38,582			94,551			118,503
Other operating expenses:
Other hotel operating costs		15,670			18,287			46,229			53,885
Property and other taxes, insurance, and leases		4,147			4,226			12,829			12,338
Corporate and other		4,289			4,373			11,458			13,742
Casualty losses, net		38			(57	)		133			(57	)
Depreciation and amortization		8,774			8,120			26,067			23,578
Impairment of long-lived assets		34,165			1,393			35,349			9,114
Total other operating expenses		67,083			36,342			132,065			112,600
Operating (loss) income		(36,491	)		2,240			(37,514	)		5,903
Other income (expenses):
Interest income and other		16			241			98			907
Interest expense		(3,304	)		(4,821	)		(10,598	)		(14,768	)
(Loss) income before income taxes and noncontrolling interest		(39,779	)		(2,340	)		(48,014	)		(7,958	)
(Provision) benefit for income taxes — continuing operations		(10	)		81			(29	)		(6	)
(Loss) income from continuing operations		(39,789	)		(2,259	)		(48,043	)		(7,964	)
Discontinued operations:
Income (loss) from discontinued operations before income taxes		2,841			(3,870	)		(3,342	)		759
Benefit (provision) for income taxes — discontinued operations		158			(54	)		196			(129	)
Income (loss) from discontinued operations		2,999			(3,924	)		(3,146	)		630
Net (loss) income		(36,790	)		(6,183	)		(51,189	)		(7,334	)
Less: Net loss attributable to noncontrolling interest		589			—			1,091			—
Net (loss) income attributable to common stock	$	(36,201	)	$	(6,183	)	$	(50,098	)	$	(7,334	)
Basic and diluted net (loss) income per share attributable to common stock	$	(1.70	)	$	(0.29	)	$	(2.35	)	$	(0.33	)

LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER
(UNAUDITED)

	2009									2008												2007
	Third			Second			First			Fourth			Third			Second			First			Fourth
	Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter
	($ in thousands)
Revenues:
Rooms	$	38,095		$	39,685		$	36,635		$	38,732		$	46,679		$	49,364		$	43,848		$	40,730
Food and beverage		10,469			12,545			10,838			13,532			12,545			15,404			12,062			14,429
Other		2,028			1,958			1,703			1,886			2,176			2,138			2,062			1,819
		50,592			54,188			49,176			54,150			61,400			66,906			57,972			56,978
Direct operating expenses:
Rooms		10,952			10,784			10,082			11,026			12,200			12,179			11,183			10,497
Food and beverage		7,784			8,284			7,638			9,015			9,070			9,851			8,819			9,054
Other		1,264			1,319			1,298			1,333			1,548			1,537			1,388			1,288
		20,000			20,387			19,018			21,374			22,818			23,567			21,390			20,839
		30,592			33,801	#		30,158			32,776			38,582			43,339			36,582			36,139
Other operating expenses:
Other hotel operating costs		15,670			14,931			15,628			16,075			18,287			17,719			17,879			16,285
Property and other taxes, insurance and leases		4,147			4,471			4,211			4,223			4,226			3,760			4,352			4,334
Corporate and other		4,289			3,564			3,605			3,063			4,373			3,484			5,885			4,248
Casualty losses (gains), net		38			14			81			1,152			(57	)		—			—			—
Restructuring		—			—			—			—			—			—			—			(25	)
Depreciation and amortization		8,774			8,800			8,493			8,352			8,120			7,989			7,469			7,464
Impairment of long-lived assets		34,165			719			465			354			1,393			5,580			2,141			796
Other operating expenses		67,083			32,499			32,483			33,219			36,342			38,532			37,726			33,102
Operating (loss) income		(36,491	)		1,302			(2,325	)		(443	)		2,240			4,807			(1,144	)		3,037
Other income (expenses):
Interest income and other		16			37			45			147			241			276			390			912
Other interest expense		(3,304	)		(3,515	)		(3,779	)		(4,577	)		(4,821	)		(4,775	)		(5,172	)		(5,790	)
(Loss) income before income taxes		(39,779	)		(2,176	)		(6,059	)		(4,873	)		(2,340	)		308			(5,926	)		(1,841	)
(Provision) benefit for income taxes — continuing operations		(10	)		53			(72	)		(74	)		81			(24	)		(63	)		(2,262	)
(Loss) income from continuing operations		(39,789	)		(2,123	)		(6,131	)		(4,947	)		(2,259	)		284			(5,989	)		(4,103	)
Discontinued operations:
Income (loss) from discontinued operations before income taxes		2,841			(5,256	)		(927	)		199			(3,870	)		5,986			(1,357	)		(5,824	)
Benefit (provision) for income taxes		158			62			(24	)		98			(54	)		97			(172	)		1,854
Income (loss) from discontinued operations		2,999			(5,194	)		(951	)		297			(3,924	)		6,083			(1,529	)		(3,970	)
Net (loss) income	$	(36,790	)	$	(7,317	)	$	(7,082	)	$	(4,650	)	$	(6,183	)	$	6,367		$	(7,518	)	$	(8,073	)
Less: Net loss (income) attributable to noncontrolling interest		589			342			160			—			—			—			—			—
Net (loss) income attributable to common stock	$	(36,201	)	$	(6,975	)	$	(6,922	)	$	(4,650	)	$	(6,183	)	$	6,367		$	(7,518	)	$	(8,073	)

LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
with Income/(Loss) from Continuing Operations (a GAAP measure)
(UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2009			2008			2009			2008
	($ in thousands)						($ in thousands)
Continuing operations:
(Loss) income from continuing operations	$	(39,789	)	$	(2,259	)	$	(48,043	)	$	(7,964	)
Net loss attributable to noncontrolling interest		589			—			1,091			—
(Loss) income from continuing operations attributable to common stock	$	(39,200	)	$	(2,259	)	$	(46,952	)	$	(7,964	)
Depreciation and amortization		8,774			8,120			26,067			23,578
Interest income		(16	)		(239	)		(99	)		(904	)
Interest expense		3,304			4,821			10,598			14,768
Provision (benefit) for income taxes		10			(81	)		29			6
EBITDA from continuing operations	$	(27,128	)	$	10,362		$	(10,357	)	$	29,484
Adjustments to EBITDA:
Impairment of long-lived assets	$	34,165		$	1,393		$	35,349		$	9,114
Casualty losses, net		38			(57	)		133			(57	)
Adjusted EBITDA from continuing operations	$	7,075		$	11,698		$	25,125		$	38,541

Lodgian, Inc.
Summary of Mortgage Debt as of September 30, 2009
($ in thousands)
(UNAUDITED)

			Maturity	Debt
	Encumbered Hotels	Interest rate	Date	Balance		DSCR(n)
Mortgage Debt
Goldman Sachs	10 hotels (a)	LIBOR plus 1.50% (b)	May 2010 (c)	$	130,000		3.00
Merrill Lynch Fixed Rate Pool 1	4 hotels (d)	6.58%	July 2010		36,125		1.39
Merrill Lynch Fixed Rate Pool 3	6 hotels (e)	6.58%	October 2009		45,500		0.46
Merrill Lynch Fixed Rate Pool 4	6 hotels (f)	6.58% (g)	July 2012		34,868		1.11
IXIS	3 hotels (h)	LIBOR plus 2.95% (i)	March 2010 (j)		20,753		1.35
IXIS	Holiday Inn Hilton Head	LIBOR plus 2.90% (k)	December 2009 (l)		18,353		1.85
Wachovia- Worcester	Crowne Plaza Worcester	6.04%	February 2011		16,270		0.36
Wachovia- Palm Desert	Holiday Inn Express Palm Desert	6.04%	February 2011		5,676		0.46
Wachovia- Pinehurst	Springhill Suites Pinehurst	5.78%	June 2010		2,937		1.30
		4.08% (m)		$	310,482

Notes:

(a)	The hotels that secure this debt are: Crowne Plaza Albany; Holiday Inn BWI; Residence Inn Dedham; Hilton Ft. Wayne; Radisson Kenner; Courtyard Lafayette; Holiday Inn Meadow Lands; Holiday Inn Santa Fe; Crowne Plaza Silver Spring; and Courtyard Tulsa.
(b)	We have purchased an interest rate cap that caps LIBOR at 5.0% and expires in May 2011.
(c)	This loan can be extended for as many as two years, subject to satisfying certain conditions.
(d)	The hotels that secure this debt are: Courtyard Atlanta-Buckhead; Marriott Denver; Four Points Philadelphia; and Holiday Inn Strongsville.
(e)	The hotels that secure this debt are: Courtyard Abilene; Courtyard Bentonville; Courtyard Florence; Holiday Inn Inner Harbor; Crowne Plaza Houston; and Fairfield Inn Merrimack.
(f)	The hotels that secure this debt are: Hilton Columbia; Wyndham DFW; Residence Inn Little Rock; Holiday Inn Myrtle Beach; Courtyard Paducah; and Crowne Plaza West Palm Beach.
(g)	There is an exit fee associated with this loan. The amount of the fee will increase each year but, assuming the loan is held for the full term, will effectively increase the current interest rate by 100 basis points per annum.
(h)	The hotels that secure this debt are: Crowne Plaza Phoenix; Radisson Phoenix; Crowne Plaza Pittsburgh.
(i)	We have purchased an interest rate cap that caps LIBOR at 4.5% and expires in March 2011.
(j)	This loan can be extended for one additional year, subject to satisfying certain conditions.
(k)	We have purchased an interest rate cap that caps LIBOR at 5.0% and expires in December 2010.
(l)	This loan can be extended for one additional year, subject to satisfying certain conditions.
(m)	Annual effective weighted average cost of debt at September 30, 2009
(n)	Debt Service Coverage Ratio (“DSCR”) is calculated using trailing twelve month NOI divided by actual trailing twelve month debt service, both through September 2009.

Lodgian, Inc.
2009 Supplemental Operating Information
(UNAUDITED)

Hotel		Room			Three months ended
Count		Count			September 30, 2009			September 30, 2008			Increase (Decrease)
	35		6,644	All Continuing Operations hotels
				Occupancy		65.0	%		71.7	%				(9.3	)%
				ADR	$	95.89		$	106.37		$	(10.48	)	(9.9	)%
				RevPAR	$	62.32		$	76.24		$	(13.92	)	(18.3	)%
				RevPAR Index		100.6	%		102.3	%		(1.7	)%	(1.7	)%
	31		5,964	Continuing Operations less hotels under renovation in the third quarter 2008 or 2009
				Occupancy		64.5	%		72.1	%				(10.5	)%
				ADR	$	97.69		$	107.83		$	(10.14	)	(9.4	)%
				RevPAR	$	63.04		$	77.74		$	(14.70	)	(18.9	)%
				RevPAR Index		102.4	%		104.4	%		(2.0	)%	(1.9	)%
	12		1,398	Marriott Hotels
				Occupancy		69.4	%		77.1	%				(10.0	)%
				ADR	$	98.27		$	114.09		$	(15.82	)	(13.9	)%
				RevPAR	$	68.25		$	87.99		$	(19.74	)	(22.4	)%
				RevPAR Index		109.2	%		110.2	%		(1.0	)%	(0.9	)%
	2		396	Hilton Hotels
				Occupancy		54.9	%		68.3	%				(19.6	)%
				ADR	$	108.36		$	112.15		$	(3.79	)	(3.4	)%
				RevPAR	$	59.46		$	76.63		$	(17.17	)	(22.4	)%
				RevPAR Index		90.0	%		100.2	%		(10.2	)%	(10.2	)%
	17		3,975	IHG Hotels
				Occupancy		64.1	%		71.0	%				(9.7	)%
				ADR	$	99.53		$	106.20		$	(6.67	)	(6.3	)%
				RevPAR	$	63.78		$	75.42		$	(11.64	)	(15.4	)%
				RevPAR Index		101.7	%		103.5	%		(1.8	)%	(1.7	)%
	4		875	Other Brands — Radisson, Wyndham and Four Points by Sheraton
				Occupancy		66.6	%		67.5	%				(1.3	)%
				ADR	$	71.39		$	90.44		$	(19.05	)	(21.1	)%
				RevPAR	$	47.54		$	61.02		$	(13.48	)	(22.1	)%
				RevPAR Index		84.3	%		86.2	%		(1.9	)%	(2.2	)%

Lodgian, Inc.
2009 Supplemental Operating Information
(UNAUDITED)

				Nine months ended
Hotel	Room
Count	Count			September 30, 2009			September 30, 2008			Increase (Decrease)
35		6,644	All Continuing Operations hotels
			Occupancy		64.1	%		71.1	%				(9.8	)%
			ADR	$	98.30		$	107.81		$	(9.51	)	(8.8	)%
			RevPAR	$	63.04		$	76.69		$	(13.65	)	(17.8	)%
			RevPAR Index		100.5	%		100.6	%		(0.1	)%	(0.1	)%
24		4,324	Continuing Operations less hotels under renovation in the first, second or third quarter 2008 or 2009
			Occupancy		64.8	%		72.4	%				(10.5	)%
			ADR	$	95.13		$	104.55		$	(9.42	)	(9.0	)%
			RevPAR	$	61.66		$	75.66		$	(14.00	)	(18.5	)%
			RevPAR Index		101.0	%		101.9	%		(0.9	)%	(0.9	)%
12		1,398	Marriott Hotels
			Occupancy		67.8	%		73.7	%				(8.0	)%
			ADR	$	100.89		$	113.68		$	(12.79	)	(11.3	)%
			RevPAR	$	68.35		$	83.79		$	(15.44	)	(18.4	)%
			RevPAR Index		111.8	%		110.4	%		1.4	%	1.3	%
2		396	Hilton Hotels
			Occupancy		57.6	%		66.7	%				(13.6	)%
			ADR	$	109.94		$	112.44		$	(2.50	)	(2.2	)%
			RevPAR	$	63.36		$	74.96		$	(11.60	)	(15.5	)%
			RevPAR Index		95.3	%		98.4	%		(3.1	)%	(3.2	)%
17		3,975	IHG Hotels
			Occupancy		63.2	%		71.3	%				(11.4	)%
			ADR	$	100.84		$	107.63		$	(6.79	)	(6.3	)%
			RevPAR	$	63.68		$	76.71		$	(13.03	)	(17.0	)%
			RevPAR Index		100.3	%		101.5	%		(1.2	)%	(1.2	)%
4		875	Other Brands — Radisson, Wyndham and Four Points by Sheraton
			Occupancy		65.7	%		68.4	%				(3.9	)%
			ADR	$	78.34		$	96.54		$	(18.20	)	(18.9	)%
			RevPAR	$	51.46		$	66.05		$	(14.59	)	(22.1	)%
			RevPAR Index		84.5	%		82.9	%		1.6	%	1.9	%

Lodgian, Inc.
Hotel Portfolio as of November 1, 2009

Location	Brand	Rooms
Continuing Operations
Bentonville, AR	Courtyard by Marriott		90
Little Rock, AR	Residence Inn by Marriott		96
Phoenix, AZ	Crowne Plaza		295
Phoenix, AZ	Radisson		159
Palm Desert, CA	Holiday Inn Express		129
Denver, CO	Marriott		238
Melbourne, FL	Crowne Plaza		270
West Palm Beach, FL	Crowne Plaza		219
Atlanta, GA	Courtyard by Marriott		181
Ft. Wayne, IN	Hilton		244
Florence, KY	Courtyard by Marriott		78
Paducah, KY	Courtyard by Marriott		100
Kenner, LA	Radisson		244
Lafayette, LA	Courtyard by Marriott		90
Dedham, MA	Residence Inn by Marriott		81
Worcester, MA	Crowne Plaza		243
Baltimore (BWI Airport), MD	Holiday Inn		259
Baltimore (Inner Harbor), MD	Holiday Inn		365
Columbia, MD	Hilton		152
Silver Spring, MD	Crowne Plaza		231
Pinehurst, NC	Springhill Suites by Marriott		107
Merrimack, NH	Fairfield Inn by Marriott		115
Santa Fe, NM	Holiday Inn		130
Albany, NY	Crowne Plaza		384
Strongsville, OH	Holiday Inn		303
Tulsa, OK	Courtyard by Marriott		122
Monroeville, PA	Holiday Inn		187
Philadelphia, PA	Four Points by Sheraton		190
Pittsburgh — Washington, PA	Holiday Inn		138
Pittsburgh, PA	Crowne Plaza		193
Hilton Head, SC	Holiday Inn		202
Myrtle Beach, SC	Holiday Inn		133
Abilene, TX	Courtyard by Marriott		100
Dallas (DFW Airport), TX	Wyndham		282
Houston, TX	Crowne Plaza		294
			6,644
Held For Sale
Memphis, TN	Independent		105