8-K

United States
Securities And Exchange Commission

Washington, DC 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): December 20, 2007

Lodgian, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	001-14537	52-2093696
(State or Other Jurisdiction of	(Commission File Number)	(I.R.S. Employer Identification No.)
Incorporation or organization)

3445 Peachtree Road, N.E., Suite 700
Atlanta, Georgia 30326
(Address of Principal Executive Offices)
(Zip Code)

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

NONE
(Former name or former address, if changed since last report)

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:

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 2.05 Costs Associated with Exit or Disposal Activities.

On December 20, 2007, Lodgian, Inc. (the “Company”) approved a plan for the sale to third party buyers of nine hotels owned by the Company, in addition to the three hotels that were already held for sale and classified as discontinued operations as of that date. The additional nine hotels identified for sale are as follows:

Crowne Plaza — Worcester, MA
Hilton — Troy, MI
Holiday Inn — Towson, MD
Holiday Inn — East Hartford, CT
Holiday Inn — Frisco, CO
Holiday Inn — Glen Burnie, MD
Holiday Inn — Phoenix, AZ
Holiday Inn Select — Windsor, Ontario Canada
French Quarter Suites — Memphis, TN

The Company has evaluated each of these nine hotels to determine whether impairment or other charges are required to be recognized under generally accepted accounting principles. Based on this evaluation, and the comparison of the net book values to the estimated selling prices of the hotels, the Company expects to recognize an impairment charge in connection with the disposition of these properties of approximately $6 million. The impairment charge relates to three of the nine hotels identified above. Six of the nine hotels are expected to generate proceeds greater than their net book values.

The Company will recognize the asset impairment charge in the fourth quarter of 2007.

Item 2.06 Material Impairments.

See Item 2.05 above.

Item 7.01 Regulation FD Disclosure.

This Current Report on Form 8-K is being furnished to disclose the press release issued by the Company on December 27, 2007.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release, dated December 27, 2007.

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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, hereunto duly authorized.

Lodgian, Inc.
By:	/s/ Daniel E. Ellis
	Daniel E. Ellis
	Senior Vice President, General Counsel and Secretary

Dated: December 27, 2007

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EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release, dated December 27, 2007

4

EX-99.1

EXHIBIT 99.1

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

Lodgian Provides Updated Information on its Pursuit of Strategic Alternatives to Enhance Shareholder Value

     ATLANTA, Ga., December 27, 2007—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, today released information to update investors regarding the Company’s previously announced review of strategic alternatives to enhance shareholder value. These plans include increased authorization of share repurchases and the sale of additional hotel assets. The Company will continue its review of strategic alternatives to maximize shareholder value, including, among other things, a sale of the entire Company. However, the current volatility in the debt and credit markets may inhibit or delay the signing or consummation of a transaction to sell the Company. As a result, Lodgian has suspended discussions with interested parties.

     The Company’s review of strategic alternatives has reinforced the view of its Board of Directors that at the current market price, Lodgian’s shares are undervalued and that they represent an attractive opportunity for investment of the Company’s available cash. On December 21, 2007, the closing price for the Company’s shares as reported on the American

Stock Exchange was $12.00 per share. Commencing with purchases in May 2006 and through December 20, 2007, the Company has repurchased an aggregate of 1.6 million shares of Common Stock at an average cost of $11.83 per share. The Company expects that its repurchases will continue as it explores other strategic alternatives for the enhancement of shareholder value. Investors should be aware that as a result, it is possible that the Company may be repurchasing shares at a time when it is evaluating strategic alternatives, including without limitation a potential sale of the Company, and that this raises the possibility that a Company repurchase might occur shortly prior to, and at a lower price than it negotiates for a sale of the Company. The Company will continue executing its share repurchases in accordance with the requirements of the safe harbor provisions of SEC Rule 10b-18.

     As part of its review of strategic alternatives to enhance shareholder value, the Company has continued with its previously announced plan for the sale of certain assets, having sold 24 hotels since November 1, 2006 for aggregate gross proceeds of $92 million. Further, Lodgian has identified nine additional hotels that it intends to sell. “The sale of these non-strategic properties will allow us to concentrate operationally on those hotels that will generate the highest returns and produce long-term growth for the company,” said Ed Rohling, Lodgian’s president and chief executive officer. “We will be increasing our operational focus on our upscale and upper upscale properties, which will comprise approximately 66 percent of the remaining rooms.”

     The nine hotels are identified as:

Crowne Plaza- Worcester, MA	243 rooms
Hilton- Troy, MI	191 rooms
Holiday Inn- Towson, MD	139 rooms
Holiday Inn- East Hartford, CT	130 rooms
Holiday Inn- Frisco, CO	217 rooms
Holiday Inn- Glen Burnie, MD	127 rooms
Holiday Inn- Phoenix, AZ	144 rooms
Holiday Inn Select- Windsor, Ontario	214 rooms
French Quarter Suites- Memphis, TN	105 rooms

     Of the nine hotels to be sold, three have net book values in excess of anticipated net proceeds. Therefore, the decision to sell these hotels will cause the Company to recognize an impairment charge, currently estimated to be approximately $6 million, which will be recorded in the 4th quarter of 2007. The Company expects to reclassify these hotels to discontinued operations in the 2008 first quarter. Management and the Board of Directors remain focused on the enhancement of shareholder value through all reasonably available means.

     The Company has decided to resume its practice of holding investor conference calls periodically, when it releases its financial results.

About Lodgian

     Lodgian is one of the largest independent owners and operators of full- service hotels in the United States. The Company currently manages a portfolio of 47 hotels with 8,547 rooms located in 25 states and Canada. Of the company’s 47-hotel portfolio, 25 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 12 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott and Residence Inn by Marriott), four are Hilton brands (Hilton and Doubletree Club) and three are affiliated with two other nationally recognized franchisors. Three hotels are independent, unbranded properties. For more information about Lodgian, visit the Company’s Web site: www.lodgian.com.

     This press release includes forward-looking statements related to Lodgian’s operations that are based on management’s current expectations, estimates and projections. These statements are not guarantees of future performance and actual results could differ materially. The words

“may,” “should,” “expect,” “believe,” “anticipate,” “project,” “estimate,” “plan,” and similar expressions are intended to identify forward-looking statements. Certain factors are not within the company’s control and readers are cautioned not to put undue reliance on forward-looking statements. These statements involve risks and uncertainties including, but not limited to, the company’s ability to generate sufficient working capital from operations and other risks detailed from time-to-time in the company’s SEC reports. The company undertakes no obligations to update events to reflect changed assumptions, the occurrence of unanticipated events or changes to future results over time.