EX-99.1 2 g17811exv99w1.htm EX-99.1 EX-99.1
Exhibit 99.1
(LODGIAN_LOGO)
For Immediate Release
Contact:
Debi Neary Ethridge
Vice President, Finance & Investor Relations
dethridge@lodgian.com
(404) 365-2719
Lodgian Reports 2008 Fourth Quarter and Full-Year 2008 Results
     ATLANTA, Ga., February 25, 2009—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, today reports results for the fourth quarter and full year ended December 31, 2008.
     The company will host an 11 a.m. E.T. conference call today to discuss results.
     The “35 continuing operations hotels” comprise those Lodgian properties that are not held for sale as of December 31, 2008. Lists of properties, both continuing operations and held for sale, are attached to this press release.
Fourth Quarter 2008 Highlights for 35 Continuing Operations Hotels
    Reduced corporate overhead by $1.2 million in the 2008 fourth quarter compared to the 2007 fourth quarter.
    Increased revenue per available room (RevPAR) index by 3.9 percent in the 2008 fourth quarter over the 2007 fourth quarter, to 101.7 percent.
    Experienced a 4.9 percent decrease in RevPAR in the 2008 fourth quarter over the 2007 fourth quarter, compared to a 9.8 percent decrease in the same period for the U.S. industry as a whole, according to Smith Travel Research.
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Full Year 2008 Highlights for 35 Continuing Operations Hotels
    Increased RevPAR index by 1.9 percent in 2008 compared to 2007, to 100.1 percent.
    Reduced corporate overhead by $5.1 million from 2007 to 2008.
    Achieved a 61 basis point increase in Adjusted EBITDA margin in 2008 over the prior year, with Adjusted EBITDA increasing $1.1 million to $48.0 million.
Statistics for 35 Continuing Operations Hotels
                                                 
 
    4Q 2008 *     4Q 2007 *     % Change   Year 2008*   Year 2007*   % Change
Rooms revenue
  $ 38,732     $ 40,730       -4.9 %   $ 178,623     $ 179,716       -0.6 %
RevPAR
  $ 63.27     $ 66.51       -4.9 %   $ 73.32     $ 73.97       -0.9 %
Total revenue
  $ 54,150     $ 56,978       -5.0 %   $ 240,428     $ 242,558       -0.9 %
Loss from continuing operations
  $ (4,947 )   $ (4,103 )     n/m     $ (12,911 )   $ (5,581 )     n/m  
EBITDA
  $ 7,909     $ 10,501       -24.7 %   $ 37,390     $ 42,569       -12.2 %
Adjusted EBITDA (defined below)
  $ 9,415     $ 11,272       -16.5 %   $ 47,953     $ 46,886       2.3 %
Consolidated Financial Results
                                                 
Loss from continuing operations
  $ (4,947 )   $ (4,103 )     n/m     $ (12,911 )   $ (5,581 )     n/m  
Income/(loss) from discontinued operations
  $ 297     $ (3,970 )     n/m     $ 927     $ (2,865 )     n/m  
Loss attributable to common stock
  $ (4,650 )   $ (8,073 )     n/m     $ (11,984 )   $ (8,446 )     n/m  
Loss per share attributable to common stock
  $ (0.22 )   $ (0.34 )     n/m     $ (0.55 )   $ (0.35 )     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.
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Fourth Quarter 2008 Results
     Fourth quarter 2008 total revenue for 35 continuing operations hotels declined approximately 5.0 percent to $54.2 million, compared to the 2007 fourth quarter. Loss from continuing operations was $(4.9) million, compared to $(4.1) million in the 2007 fourth quarter.
     Net loss attributable to common shares was $(4.7) million, or $(0.22) per share, compared to a net loss of $(8.1) million, or $(0.34) per share in the 2007 fourth quarter.
     EBITDA from continuing operations hotels declined $(2.6) million to $7.9 million, compared to the prior year’s fourth quarter. Adjusted EBITDA for the same properties decreased approximately 16.5 percent, from $11.3 million in the fourth quarter of 2007 to $9.4 million in the 2008 fourth quarter. Adjusted EBITDA margins for the 35 continuing operations hotels declined 240 basis points to 17.4 percent during the 2008 fourth quarter, compared to the 2007 fourth quarter.
Full Year 2008 Results
     2008 total revenue for continuing operations hotels declined 0.9 percent to $240.4 million from $242.6 million in 2007. During 2008, the impact of displacement related to renovations at 11 hotels was approximately $2.1 million, compared to displacement of $1.9 million in 2007. Loss from continuing operations was $(12.9) million, compared to $(5.6) million in 2007, due primarily to impairment losses of $9.5 million recorded during 2008 compared to $1.6 million of impairment losses recorded during 2007.
     Net loss attributable to common shares was $(12.0) million, or $(0.55) per share, compared to a net loss of $(8.4) million, or $(0.35) per diluted share in 2007.
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     EBITDA from continuing operations hotels declined $5.2 million to $37.4 million, compared to the prior year. Adjusted EBITDA for the same properties increased 2.3 percent, from $46.9 million in 2007 to $48.0 million in 2008. Adjusted EBITDA margins for the 35 continuing operations hotels increased 61 basis points to 19.9 percent for the 2008 full year.
Management Comments
     “The recession gained significant momentum in the fourth quarter,” said Peter Cyrus, Lodgian interim president and chief executive officer. “While our RevPAR was down for both the fourth quarter and the full year, we outperformed the industry as a whole. We improved our market share, reflected by a 1.9 percent increase in the RevPAR index for our continuing operations hotels for the full year and a strong 3.9 percent improvement in the fourth quarter.
     “Our continuing operations portfolio is generally in good condition and should compete effectively in each respective market,” he noted. “We completed $43.3 million in renovations in 2008, but have only $25.7 million budgeted for 2009. These capital expenditures are for completion of renovations for recently renewed license extensions and for other necessary projects.”
Asset Disposition Program
     During the year, Lodgian sold five hotels for gross proceeds of $25.0 million. Of the net proceeds, $7.5 million was used for debt reduction and the remainder for general corporate purposes.
     As of December 31, 2008, a total of six properties remained classified as held for sale and were in varying stages of the sale process.
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Balance Sheet Update
     Of the 35 continuing operations hotels, 33 were encumbered by mortgage debt as of December 31, 2008. Additionally, two held for sale hotels were encumbered. These 35 hotels served as collateral for various mortgage debt facilities totaling $332.6 million at December 31, 2008. During 2008, Lodgian paid down its mortgage debt by $26.8 million, or 7.5 percent of the outstanding debt, through a combination of defeasance, asset sales and principal amortization. A summary of mortgage debt facilities is included in the supplemental information attached to this release.
     Lodgian has approximately $128 million of mortgage debt maturing in July 2009. This maturity cannot be extended without the approval of the loan servicers, which extension has been requested but not yet granted. In an effort to refinance the debt prior to the maturity date, the company retained Jones Lang LaSalle in 2008 to assist in refinancing the debt.
     “We are looking at all options, including working with national and international lenders on a portfolio and individual property basis, but to date we have been unable to secure refinancing,” said James MacLennan, executive vice president and chief financial officer. “To assist this refinancing effort, we are also seeking financing on certain unencumbered assets.”
     In addition to the July 2009 maturity, the company has three other 2009 debt maturities which in the aggregate total approximately $169.5 million of mortgage debt. Each of these debt facilities has extension options of one to three years, and the company expects to exercise those extension options.
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     During 2008, Lodgian acquired approximately 2.1 million shares of common stock at an average price of $9.27 per share, for a total of approximately $19.3 million. The company did not acquire any stock in the 2008 fourth quarter.
     At year-end 2008, Lodgian had $28.6 million in unrestricted and restricted cash on its balance sheet, as well as $11.4 million held by lenders for various capital expenditure projects.
Conference Call
     Lodgian will hold a conference call to discuss its 2008 fourth quarter and full year results today, February 25, at 11 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, Q4 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Wednesday, March 4 by dialing (800) 866-7991, reference number 11124773. 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 out hotels in relation to our 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 largest independent owners and operators of full-service hotels in the United States. The company currently owns and manages a portfolio of 41 hotels with 7,577 rooms located in 23 states and Canada. Of the company’s 41-hotel portfolio, 21 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, Residence Inn by Marriott and Fairfield Inn by Marriott), three are Hilton brands, and four are affiliated with other nationally recognized franchisors including Starwood,
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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.
Forward-Looking Statements
     This press release may contain 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 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 mortgage debt that matures on July 1, 2009, 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, 2007 and Form 10-Q for the quarter ended September 30, 2008. 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)
                 
    December 31, 2008     December 31, 2007  
    ($ in thousands, except share data)  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 20,454     $ 54,389  
Cash, restricted
    8,179       8,363  
Accounts receivable (net of allowances: 2008 - $263; 2007 - $323)
    7,115       8,794  
Insurance receivable
          2,254  
Inventories
    2,983       3,097  
Prepaid expenses and other current assets
    21,257       18,186  
Assets held for sale
    33,021       8,009  
 
           
Total current assets
    93,009       103,092  
Property and equipment, net
    447,366       499,986  
Deposits for capital expenditures
    11,408       16,565  
Other assets
    3,631       5,087  
 
           
 
  $ 555,414     $ 624,730  
 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 7,897     $ 9,692  
Other accrued liabilities
    22,897       28,336  
Advance deposits
    1,293       1,683  
Insurance advances
          2,650  
Current portion of long-term liabilities
    124,955       5,092  
Liabilities related to assets held for sale
    16,167       961  
 
           
Total current liabilities
    173,209       48,414  
Long-term liabilities
    194,800       355,728  
 
           
Total liabilities
    368,009       404,142  
Commitments and contingencies
               
Stockholders’ equity:
               
Common stock, $.01 par value, 60,000,000 shares authorized;
               
25,075,837 and 25,008,621 issued at December 31, 2008 and
               
December 31, 2007, respectively
    251       250  
Additional paid-in capital
    330,785       329,694  
Accumulated deficit
    (105,246 )     (93,262 )
Accumulated other comprehensive income
    1,262       4,115  
Treasury stock, at cost, 3,806,000 and 1,709,878 shares at
               
December 31, 2008 and December 31, 2007, respectively
    (39,647 )     (20,209 )
 
           
Total stockholders’ equity
    187,405       220,588  
 
           
 
  $ 555,414     $ 624,730  
 
           

 


 

LODGIAN, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                 
    2008     2007  
    ($ in thousands)  
Revenues:
               
Rooms
  $ 178,623     $ 179,716  
Food and beverage
    53,543       55,089  
Other
    8,262       7,753  
 
           
Total revenues
    240,428       242,558  
 
           
Direct operating expenses:
               
Rooms
    46,588       44,833  
Food and beverage
    36,755       37,239  
Other
    5,806       5,503  
 
           
Total direct operating expenses
    89,149       87,575  
 
           
 
    151,279       154,983  
Other operating expenses:
               
Other hotel operating costs
    69,960       68,623  
Property and other taxes, insurance, and leases
    16,561       17,662  
Corporate and other
    16,805       21,391  
Casualty losses (gains), net
    1,095       (1,867 )
Restructuring
          1,232  
Depreciation and amortization
    31,930       28,765  
Impairment of long-lived assets
    9,468       1,622  
 
           
Total other operating expenses
    145,819       137,428  
 
           
Operating income
    5,460       17,555  
Other income (expenses):
               
Interest income and other
    1,054       3,944  
Interest expense
    (19,345 )     (23,172 )
Loss on debt extinguishment
          (3,330 )
 
           
Loss before income taxes and minority interests
    (12,831 )     (5,003 )
Minority interests (net of taxes, nil)
          (421 )
Provision for income taxes — continuing operations
    (80 )     (157 )
 
           
Loss from continuing operations
    (12,911 )     (5,581 )
 
           
Discontinued operations:
               
Income (loss) from discontinued operations before income taxes
    958       (2,049 )
Provision for income taxes — discontinued operations
    (31 )     (816 )
 
           
Income (loss) from discontinued operations
    927       (2,865 )
 
           
Net loss attributable to common stock
  $ (11,984 )   $ (8,446 )
 
           
Net loss per share attributable to common stock:
               
Basic
  $ (0.55 )   $ (0.35 )
 
           
Diluted
  $ (0.55 )   $ (0.35 )
 
           

 


 

LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER
(UNAUDITED)
                                                                 
    2008     2007  
    Fourth     Third     Second     First     Fourth     Third     Second     First  
    Quarter     Quarter     Quarter     Quarter     Quarter     Quarter     Quarter     Quarter  
                    ($ in thousands)                          
Revenues:
                                                               
Rooms
  $ 38,732     $ 46,679     $ 49,364     $ 43,848     $ 40,730     $ 46,942     $ 49,224     $ 42,821  
Food and beverage
    13,532       12,545       15,404       12,062       14,429       12,857       15,323       12,480  
Other
    1,886       2,176       2,138       2,062       1,819       2,134       2,131       1,668  
 
                                               
 
    54,150       61,400       66,906       57,972       56,978       61,933       66,678       56,969  
 
                                               
Direct operating expenses:
                                                               
Rooms
    11,026       12,200       12,179       11,183       10,497       11,997       11,725       10,614  
Food and beverage
    9,015       9,070       9,851       8,819       9,054       9,432       9,918       8,835  
Other
    1,333       1,548       1,537       1,388       1,288       1,512       1,462       1,242  
 
                                               
 
    21,374       22,818       23,567       21,390       20,839       22,941       23,105       20,691  
 
                                               
 
    32,776       38,582       43,339       36,582       36,139       38,992       43,573       36,278  
Other operating expenses:
                                                               
Other hotel operating costs
    16,075       18,287       17,719       17,879       16,285       17,847       17,603       16,889  
Property and other taxes, insurance and leases
    4,223       4,226       3,760       4,352       4,334       4,087       4,418       4,824  
Corporate and other
    3,063       4,373       3,484       5,885       4,248       5,575       5,906       5,663  
Casualty losses (gain), net
    1,152       (57 )                                   (1,867 )
Restructuring
                            (25 )     1,258              
Depreciation and amortization
    8,352       8,120       7,989       7,469       7,464       7,226       7,098       6,977  
Impairment of long-lived assets
    354       1,393       5,580       2,141       796       512       155       159  
 
                                               
Other operating expenses
    33,219       36,342       38,532       37,726       33,102       36,505       35,180       32,645  
 
                                               
 
    (443 )     2,240       4,807       (1,144 )     3,037       2,487       8,393       3,633  
Other income (expenses):
                                                               
Interest income and other
    147       241       276       390       912       1,312       807       912  
Other interest expense
    (4,577 )     (4,821 )     (4,775 )     (5,172 )     (5,790 )     (5,958 )     (6,044 )     (5,378 )
Loss on debt extinguishment
                                        (3,330 )      
 
                                               
(Loss) income before income taxes and minority interests
    (4,873 )     (2,340 )     308       (5,926 )     (1,841 )     (2,159 )     (174 )     (833 )
Minority interests (net of taxes, nil)
                                        (56 )     (365 )
 
                                               
(Loss) income before income taxes — continuing operations
    (4,873 )     (2,340 )     308       (5,926 )     (1,841 )     (2,159 )     (230 )     (1,198 )
(Provision) benefit for income taxes — continuing operations
    (74 )     81       (24 )     (63 )     (2,262 )     1,027       372       707  
 
                                               
(Loss) income from continuing operations
    (4,947 )     (2,259 )     284       (5,989 )     (4,103 )     (1,132 )     142       (491 )
 
                                               
Discontinued operations:
                                                               
Income (loss) from discontinued operations before income taxes
    199       (3,870 )     5,986       (1,357 )     (5,824 )     1,818       (248 )     2,209  
Benefit (provision) for income taxes
    98       (54 )     97       (172 )     1,854       (639 )     (157 )     (1,875 )
 
                                               
 
                                                   
Income (loss) from discontinued operations
    297       (3,924 )     6,083       (1,529 )     (3,970 )     1,179       (405 )     334  
 
                                               
Net (loss) income attributable to common stock
  $ (4,650 )   $ (6,183 )   $ 6,367     $ (7,518 )   $ (8,073 )   $ 47     $ (263 )   $ (157 )
 
                                               

 


 

LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
with Income/(Loss) from Continuing Operations (a GAAP measure)
(UNAUDITED)
                 
    2008     2007  
    ($ in thousands)  
Continuing operations:
               
(Loss) income from continuing operations
  $ (12,911 )   $ (5,581 )
Depreciation and amortization
    31,930       28,765  
Interest income
    (1,054 )     (3,944 )
Interest expense
    19,345       23,172  
Provision (benefit) for income taxes
    80       157  
 
           
EBITDA from continuing operations
  $ 37,390     $ 42,569  
 
           
Adjustments to EBITDA:
               
Restructuring expenses
  $     $ 1,232  
Impairment of long-lived assets
    9,468       1,622  
Casualty (gains) losses, net
    1,095       (1,867 )
(Gain) loss on debt extinguishment
          3,330  
 
           
Adjusted EBITDA from continuing operations
  $ 47,953     $ 46,886  
 
           

 


 

LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Loss from Continuing Operations (a GAAP measure)
(UNAUDITED)
                                                                 
    2008     2007  
    Fourth Quarter     Third Quarter     Second Quarter     First Quarter     Fourth Quarter     Third Quarter     Second Quarter     First Quarter  
            ($ in thousands)                     ($ in thousands)          
Continuing operations:
                                                               
(Loss) income from continuing operations
  $ (4,947 )   $ (2,259 )   $ 284     $ (5,989 )   $ (4,103 )   $ (1,132 )   $ 142     $ (491 )
Depreciation and amortization
    8,352       8,120       7,989       7,469       7,464       7,226       7,098       6,977  
Interest income
    (147 )     (241 )     (276 )     (390 )     (912 )     (1,312 )     (807 )     (912 )
Interest expense
    4,577       4,821       4,775       5,172       5,790       5,958       6,044       5,378  
Provision (benefit) for income taxes
    74       (81 )     24       63       2,262       (1,027 )     (372 )     (707 )
 
                                               
EBITDA from continuing operations
  $ 7,909     $ 10,360     $ 12,796     $ 6,325     $ 10,501     $ 9,713     $ 12,105     $ 10,245  
 
                                               
Adjustments to EBITDA:
                                                               
Restructuring expenses
  $     $     $     $     $ (25 )   $ 1,258     $     $  
Impairment of long-lived assets
    354       1,393       5,580       2,141       796       512       155       159  
Casualty (gains) losses, net
    1,152       (57 )                                   (1,867 )
(Gain) loss on debt extinguishment
                                        3,330        
 
                                               
Adjusted EBITDA from continuing operations
  $ 9,415     $ 11,696     $ 18,376     $ 8,466     $ 11,272     $ 11,483     $ 15,590     $ 8,537  
 
                                               

 


 

Lodgian, Inc.
Summary of Mortgage Debt as of December 31, 2008
($ in thousands)
                                         
    Number     Debt     Maturity                
    of Hotels     Balance     Date             Interest rate  
Mortgage Debt
                                       
IXIS
    3     $ 20,977     Mar-09     [1]     LIBOR plus 2.95%, capped at 8.45%
IXIS
    1       18,530     Dec-09     [2]     LIBOR plus 2.90%, capped at 7.90%
Goldman Sachs
    10       130,000     May-09     [3]     LIBOR plus 1.50%; capped at 8.50%
Merrill Lynch Mortgage Lending, Inc. — Fixed #1
    4       39,372     Jul-09             6.58%  
Merrill Lynch Mortgage Lending, Inc. — Fixed #3
    7       53,031     Jul-09             6.58%  
Merrill Lynch Mortgage Lending, Inc. — Fixed #4
    6       35,984     Jul-09             6.58%  
Wachovia- Pinehurst
    1       2,989     Jun-10             5.78%  
Wachovia- Phoenix West
    1       9,478     Jan-11             6.03%  
Wachovia- Palm Desert
    1       5,766     Feb-11             6.04%  
Wachovia- Worcester
    1       16,501     Feb-11             6.04%  
 
                                 
Total Mortgage Debt
    35     $ 332,628                       4.71% [4]  
 
                                   
 
    [1]- Upon the satisfaction of certain conditions, two one-year extension options are available beyond the maturity date
 
    [2]- Upon the satisfaction of certain conditions, one one-year extension option is available beyond the maturity date
 
    [3]- Upon the satisfaction of certain conditions, three one-year extension options are available beyond the maturity date
 
    [4]- Annual effective weighted average cost of debt at December 31, 2008.

 


 

Lodgian, Inc.
2008 Supplemental Operating Information
                                                 
                    Three months ended        
Hotel Count     Room Count         December 31, 2008     December 31, 2007     Increase (Decrease)  
  35       6,654    
All Continuing Operations hotels
                               
               
Occupancy
    63.4%       65.3%               (2.9 )%
               
ADR
    $99.72       $101.84       ($2.12 )     (2.1 )%
               
RevPAR
    $63.27       $66.51       ($3.24 )     (4.9 )%
               
RevPAR Index
    101.7%       97.9%               3.9 %
  30       5,611    
Continuing Operations less hotels under renovation in the fourth quarter 2007 or 2008
                               
               
Occupancy
    63.6%       66.4%               (4.2 )%
               
ADR
    $100.56       $103.13       ($2.57 )     (2.5 )%
               
RevPAR
    $63.92       $68.48       ($4.56 )     (6.7 )%
               
RevPAR Index
    103.7%       100.8%               2.9 %
  12       1,397    
Marriott Hotels
                               
               
Occupancy
    67.6%       67.4%               0.3 %
               
ADR
    $107.97       $112.44       ($4.47 )     (4.0 )%
               
RevPAR
    $73.03       $75.77       ($2.74 )     (3.6 )%
               
RevPAR Index
    117.2%       112.1%               4.5 %
  2       396    
Hilton Hotels
                               
               
Occupancy
    60.5%       64.4%               (6.1 )%
               
ADR
    $107.43       $106.19       $1.24       1.2 %
               
RevPAR
    $65.04       $68.41       ($3.37 )     (4.9 )%
               
RevPAR Index
    101.7%       99.7%               2.0 %
  17       3,986    
IHG Hotels
                               
               
Occupancy
    61.1%       65.5%               (6.7 )%
               
ADR
    $98.75       $99.47       ($0.72 )     (0.7 )%
               
RevPAR
    $60.38       $65.19       ($4.81 )     (7.4 )%
               
RevPAR Index
    99.4%       97.4%               2.1 %
  3       875    
Other Brands — Radisson, Wyndham & Four Points by Sheraton
                               
               
Occupancy
    68.6%       61.4%               11.7 %
               
ADR
    $87.57       $92.69       ($5.12 )     (5.5 )%
               
RevPAR
    $60.05       $56.89       $3.16       5.6 %
               
RevPAR Index
    88.6%       78.1%               13.4 %

 


 

Lodgian, Inc.
2008 Supplemental Operating Information
                                                 
Hotel Count     Room Count         2008     2007     Increase (Decrease)  
  35       6,654    
All Continuing Operations hotels
                               
               
Occupancy
    69.2%       69.0%               0.3 %
               
ADR
    $105.95       $107.21       ($1.26 )     (1.2 )%
               
RevPAR
    $73.32       $73.97       ($0.65 )     (0.9 )%
               
RevPAR Index
    100.1%       98.2%               1.9 %
  22       4,140    
Continuing Operations less hotels under renovation during 2007 or 2008
                               
               
Occupancy
    69.4%       69.7%               (0.4 )%
               
ADR
    $103.20       $103.29       ($0.09 )     (0.1 )%
               
RevPAR
    $71.57       $72.05       ($0.48 )     (0.7 )%
               
RevPAR Index
    99.2%       97.6%               1.6 %
  12       1,397    
Marriott Hotels
                               
               
Occupancy
    72.2%       71.1%               1.5 %
               
ADR
    $112.33       $113.72       ($1.39 )     (1.2 )%
               
RevPAR
    $81.09       $80.81       $0.28       0.3 %
               
RevPAR Index
    112.1%       112.7%               (0.5 )%
  2       396    
Hilton Hotels
                               
               
Occupancy
    65.1%       67.1%               (3.0 )%
               
ADR
    $111.27       $110.09       $1.18       1.1 %
               
RevPAR
    $72.47       $73.83       ($1.36 )     (1.8 )%
               
RevPAR Index
    99.1%       96.9%               2.3 %
  17       3,986    
IHG Hotels
                               
               
Occupancy
    68.7%       69.8%               (1.6 )%
               
ADR
    $105.65       $106.47       ($0.82 )     (0.8 )%
               
RevPAR
    $72.61       $74.33       ($1.72 )     (2.3 )%
               
RevPAR Index
    99.6%       97.4%               2.3 %
  3       875    
Other Brands — Radisson, Wyndham & Four Points by Sheraton
                               
               
Occupancy
    68.5%       62.9%               8.9 %
               
ADR
    $94.28       $97.78       ($3.50 )     (3.6 )%
               
RevPAR
    $64.55       $61.46       $3.09       5.0 %
               
RevPAR Index
    84.0%       79.7%               5.4 %

 


 

Lodgian, Inc.
Continuing Operations Hotel Portfolio
                 
Location   Brand     Rooms  
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     260  
Baltimore (Inner Harbor), MD
  Holiday Inn     375  
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     99  
Dallas (DFW Airport), TX
  Wyndham     282  
Houston, TX
  Crowne Plaza     294  
 
             
 
            6,654  
 
             

 


 

Lodgian, Inc.
Assets Held for Sale
                 
Location   Brand     Rooms  
Phoenix, AZ
  Holiday Inn     144  
East Hartford, CT
  Holiday Inn     130  
Towson, MD
  Holiday Inn     139  
Troy, MI
  Hilton     191  
Memphis, TN
  Independent     105  
Windsor, Ontario, Canada
  Holiday Inn Select     214