Lodgian, Inc. (Form: 8-K)

ATLANTA, Ga., March 10, 2005—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, reported results for the fourth quarter and year ended December 31, 2004.


	4Q
	2004*			4Q 2003*			% Change			Year 2004*			Year 2003*			% Change
Rooms revenue - Continuing Operations	$	52,253		$	52,089			0.3	%	$	238,946		$	229,519			4.1	%

Total revenue - Continuing Operations	$	74,166		$	73,456			1.0	%	$	322,109		$	311,414			3.4	%

Loss from continuing operations	$	(11,070	)	$	(17,028	)		35.0	%	$	(35,846	)	$	(27,074	)		-32.4	%

(Loss)/income from discontinued operations	$	(2,694	)	$	522			-616.1	%	$	4,012		$	(4,603	)		187.2	%

Net loss attributable to common stock	$	(13,764	)	$	(16,506	)		16.6	%	$	(31,834	)	$	(39,271	)		18.9	%

Earnings before interest, taxes, depreciation and amortization (EBITDA)	$	2,520		$	1,705			47.8	%	$	49,547		$	39,052			26.9	%

Adjusted EBITDA	$	9,675		$	12,950			-25.3	%	$	59,695		$	57,242			4.3	%

Continuing Operations include two hotels in Florida that are closed due to hurricane damage.

Adjusted EBITDA is EBITDA excluding the effects of certain charges such as pre-emergence reorganization expenses, post-emergence Chapter 11 expenses included in corporate and other on our consolidated statement of operations, impairment losses and casualty losses for damage caused to properties by hurricanes.

For the year 2004, EBITDA (a non-GAAP measure) rose to $49.5 million, which included $10.2 million of hurricane damage, impairment losses and reorganization-related charges, up from $39.1 million in 2003, which included $18.1 million in impairment losses and reorganization-related charges. Adjusted EBITDA increased to $59.7 million from $57.2 million.

The company has submitted business interruption claims for September through December 2004 in the amount of $2.1 million for two hotels in Florida that closed as a result of hurricane damage. The recovery of any portion of these claims is not reflected in the 2004 financial results as these claims are subject to negotiation with the company’s insurance carriers.

In the fourth quarter, the company reported $0.3 million of casualty losses and repair expenses related to hurricane damage at eight of its hotels in Florida and South Carolina, bringing the total for the year to $2.3 million. Two of the company’s hotels — the Crowne Plaza West Palm Beach, Fla. and the Holiday Inn Melbourne, Fla. — remain closed. Room revenue displacement at these two hotels was $2.2 million for the fourth quarter and $2.7 million for the full year. Due to hurricane warnings and damage, the other six impacted hotels had displaced room revenues of $0.5 million with an estimated impact on operating results of $0.3 million for the full year.

The company is recognizing expenses related to hurricane damage repairs as these expenses are incurred at all eight damaged hotels. For the year ended December 31, 2004, the company incurred $1.9 million in hurricane clean-up and repair costs, wrote off damaged assets with a net book value of $3.7 million, and recorded $3.3 million as an insurance receivable to cover a portion of these repairs and asset replacements, net of insurance deductibles, which resulted in a net casualty loss of $2.3 million. Upon completion of all claims, the proceeds the company will receive for the hurricane losses will be reduced by the aggregate deductible of $3.1 million on six of its hotels, plus an as-yet-to-be-determined amount for repairs and upgrades not covered by insurance. In addition, the company incurred repair expenses at two other hotels which did not meet the deductible.

During 2004, 16 hotels were under renovation, causing additional displacement of $2.6 million of total revenues.

Also impacting 2004 results were Sarbanes-Oxley compliance costs, which were $1.4 million for the full year.

“Following one of the most challenging periods in the lodging industry’s history, we have moved into a strong, multi-year recovery,” said W. Thomas Parrington, president and chief executive officer. “Business travel demand has continued to improve, and is augmented by the leisure sector which has remained strong. These improving fundamentals and an expanding U.S. economy, combined with the positive effects of our completed renovations, allowed us to report solid results for a very difficult year filled with more challenges than we had anticipated.

“These results were achieved in spite of reduced occupancy due to displacement at hotels that were undergoing renovations and despite the temporary closure and disruption of business at eight of our properties damaged by hurricanes in the third quarter.”

For the 2004 fourth quarter, revenue per available room (RevPAR) at the company’s continuing operations hotels, excluding the two temporarily closed Florida hotels, rose 4.9 percent, as occupancy increased 0.6 percent and average daily rate (ADR) improved 4.3 percent, compared to the 2003 fourth quarter. Full year RevPAR, also excluding the two temporarily closed hotels, rose 4.8 percent, on a 1.9 percent increase in occupancy and a 2.9 percent rise in ADR.

•

We completed 16 hotel renovations in 2004, spending $35.2 million on our continuing operations hotels, and expect to wind up our three-year, $110–million-plus program during 2005, after which our portfolio will be in good competitive condition;

•

We sold 11 properties and two land parcels in 2004 for total net proceeds of $41.7 million, of which we used $37.4 million to reduce our debt. There are currently eight hotels and one land parcel on our list of assets held for sale;

•

We completed a one-for-three reverse stock split and a common stock offering, a portion of the proceeds of which were used to redeem our Series A preferred shares, resulting in annual savings of approximately $17 million in preferred dividend interest expense;

•

We refinanced our mortgage debt, fixing the interest rate and lengthening the maturity on a substantial portion of our debt.”

Parrington noted that, as anticipated, the company’s renovation program had a short-term, negative impact on fourth quarter earnings. “We spent approximately $9.7 million on capital improvements in the 2004 fourth quarter, excluding hurricane repairs, which increased displacement at the affected hotels to $0.4 million in room revenues and $0.3 million in operating profits. We had expected to complete the program in the 2005 first quarter, but as a result of last fall’s hurricanes, which damaged eight of our properties, we diverted some resources to more pressing repair issues.

“For the year, we completed major renovations at 16 of our hotels, bringing to 34 the number of properties that have completed significant upgrades in the past three years. We have major projects under way at 11 additional hotels. Going forward, we will maintain our hotels on a more normal five-to-seven year cycle of refurbishment, which will be completed on a phased, scheduled basis.

“Our properties that were renovated in 2003 and 2004 experienced improved occupancy and much stronger average daily rates,” Parrington said. “As we complete our renovation programs, we anticipate our occupancy and ADR performance will continue to improve. We continue to look for ways to control expenses and maximize profitability at our hotels, taking advantage whenever possible of the operating synergies and economies of scale our size affords us. Creating cost and guest service efficiencies at each of our hotels remains a top priority for us.”

During 2005, Lodgian expects to spend $84.8 million in capital improvements at its continuing operations hotels, which includes $48.0 million for hurricane repairs, much of which is anticipated to be covered by insurance proceeds. This spending will substantially complete its deferred renovations. “Including the additional projects currently under way and planned, we will have refurbished and updated approximately 70 percent of our core hotel properties by the end of 2005,” he added.

After selling two hotels in the 2004 fourth quarter, the company continued to execute its hotel disposition strategy in the 2005 first quarter with the sale of two additional hotels for aggregate net proceeds of $6.4 million, which were used to reduce debt. To date, Lodgian has sold a total of 14 hotels, two parcels of land and its only office building under its plan, designed to reduce debt and interest costs, improve the overall quality of its portfolio and position the company to take advantage of the current rebound in the lodging industry. In January, the company identified three additional hotel assets to include in its disposition program. These three properties, with 736 rooms, had a combined 2004 GAAP net loss of $6.1 million, negative EBITDA of $5.0 million and negative Adjusted EBITDA of $0.5 million.

“Since we announced the program in October 2003, we have reduced debt by approximately $49.2 million to date with proceeds from the sale of these properties. As we continue to wind down our disposition program and reduce our leverage, we also will recycle our sales proceeds into acquisitions that offer higher yields or better long-term growth potential. In December 2004 we acquired the 107-room SpringHill Suites by Marriott in Pinehurst, N.C., and we have additional candidates in our pipeline.”

The company’s acquisition profile remains primarily upscale, premium-branded, limited-service hotels, with 100 to 250 rooms, in strong suburban and urban markets. To a lesser extent, the company will review smaller upper upscale, full-service hotels, as well. Parrington noted that the company had $36.2 million in cash on hand as of December 31, 2004 for operations, capital expenditures and future growth plans.

“The industry outlook remains very positive for the foreseeable future, supported by solid fundamentals marked by increasing demand and relatively low levels of new supply,” Parrington said. “Most industry analysts are predicting solid RevPAR gains in 2005.

“We are beginning to see the benefits of our portfolio improvement program at our hotels where renovations were completed in 2003 and 2004. With the finalization of our renovation and repositioning program during 2005, we will be better positioned to take full advantage of the industry’s anticipated growth. With our stronger balance sheet, we have the flexibility to respond to acquisition and other opportunities that we expect will further drive our external growth. We remain quite optimistic about the sustainability of the industry’s current uptrend and the long-term outlook for our industry.”

Two of the company’s most profitable hotels will remain closed until mid-year due to hurricane damage, plus an additional 11 hotels are undergoing, or about to begin, major renovations. As a result, EBITDA and Adjusted EBITDA guidance for 2005 will not be provided. RevPAR for continuing operations, excluding the two hotels in Florida that are closed, is expected to increase 4 to 5 percent in the first quarter of 2005, and 5 to 7 percent for the full year. Both increases are net of the impact of renovation displacement.

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 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.

The company defines Adjusted EBITDA as EBITDA excluding the effects of certain charges such as pre-emergence reorganization expenses, post-emergence Chapter 11 expenses included in corporate and other on our consolidated statement of operations, impairment losses and casualty losses for damage caused to Lodgian’s properties by the hurricanes that hit the southeastern United Stated in the third quarter.

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 84 hotels with 15,858 rooms located in 31 states and Canada. Of the company’s 84-hotel portfolio, 72 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express) and Marriott brands (Courtyard by Marriott, Fairfield Inn by Marriott, SpringHill Suites by Marriott and Residence Inn by Marriott), and nine are affiliated with four other nationally recognized hospitality brands. Three hotels are independent, unbranded properties. For more information about Lodgian, visit the company’s Website: 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.


	Successor									Predecessor
							November 23, 2002 to			January 1, 2002 to
	2004			2003			December 31, 2002			November 22, 2002
				(unaudited)
	($in thousands, except per share data)
Revenues:
							$			$
Rooms	$	238,946		$	229,519			16,902			220,898
Food and beverage		72,429			70,791			7,415			66,709
Other		10,734			11,104			989			11,660

		322,109			311,414			25,306			299,267

Operating expenses:
Direct:
Rooms		68,054			65,814			6,246			59,378
Food and beverage		51,067			48,686			5,447			46,822
Other		8,029			7,970			880			7,836
		127,150			122,470			12,573			114,036

		194,959			188,944			12,733			185,231
Other operating expenses:
Other hotel operating costs		97,261			91,982			8,883			82,375
Property and other taxes, insurance and leases		21,884			25,014			3,298			20,162
Corporate and other		17,263			20,892			1,801			15,675
Casualty losses		2,313			—			—			—
Depreciation and amortization		27,376			29,761			3,113			40,523
Impairment of long-lived assets		7,416			12,667			—			—
Other operating expenses		173,513			180,316			17,095			158,735

		21,446			8,628			(4,362	)		26,496
Other income (expenses):
Interest income and other		681			807			14			4,940
Interest expense and other financing costs:
Preferred stock dividend		(9,383	)		(8,092	)		—			—
Other interest expense		(42,990	)		(28,581	)		(2,512	)		(25,761	)
Gain on asset dispositions		—			445			—			—
Loss on preferred stock redemption		(6,063	)		—			—			—

(Loss) income before income taxes, reorganization items and minority interests		(36,309	)		(26,793	)		(6,860	)		5,675
Reorganization items		—			(1,397	)		—			11,038

(Loss) income before income taxes and minority interests		(36,309	)		(28,190	)		(6,860	)		16,713
Minority interests		691			1,294			147			126

(Loss) income before income taxes — continuing operations		(35,618	)		(26,896	)		(6,713	)		16,839
(Provision) benefit for income taxes — continuing operations		(228	)		(178	)		(32	)		160

(Loss) income from continuing operations		(35,846	)		(27,074	)		(6,745	)		16,999

Discontinued operations:
(Loss) income from discontinued operations before income taxes		4,012			(4,603	)		(2,581	)		(5,833	)
Income tax (provision) benefit		—			—			—			1,200

(Loss) income from discontinued operations		4,012			(4,603	)		(2,581	)		(4,633	)

Net (loss) income		(31,834	)		(31,677	)		(9,326	)		12,366
Preferred stock dividend		—			(7,594	)		(1,510	)		—

										$
Net (loss) income attributable to common stock	$	(31,834	)	$	(39,271	)	$	(10,836	)		12,366

Basic and diluted loss per common share:
										$
Net (loss) income attributable to common stock	$	(2.30	)	$	(16.83	)	$	(4.64	)		0.43

Upon emergence from Chapter 11, the Company adopted fresh start reporting.	As a result, all assets and liabilities were restated to reflect fair values. The consolidated financial statements of the new
reporting entity (the “Successor”) are not comparable to the reporting entity prior to the Company’s emergence from Chapter 11 (the “Predecessor”).


	December 31, 2004			December 31, 2003
	(unaudited)
	($in thousands, except share data)
ASSETS
Current assets:
	$			$
Cash and cash equivalents		36,234			10,897
Cash, restricted		9,840			7,084
Accounts receivable (net of allowances: 2004 - $684; 2003 - $689)		7,967			8,169
Insurance receivable		3,280			—
Inventories		6,293			5,609
Prepaid expenses and other current assets		17,232			17,068
Assets held for sale		30,528			68,567

Total current assets		111,374			117,394
Property and equipment, net		569,371			563,818
Deposits for capital expenditures		34,787			15,782
Other assets, net		7,775			12,180

				$
	$	723,307			709,174

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	$			$
Accounts payable		10,957			7,131
Other accrued liabilities		33,475			31,432
Advance deposits		1,638			1,882
Current portion of long-term liabilities		25,316			16,563
Liabilities related to assets held for sale		30,541			57,948

Total current liabilities		101,927			114,956
Long-term liabilities:
12.25% Cumulative preferred shares subject to mandatory redemption		—			142,177
Other long-term liabilities		393,117			409,115

Total long-term liabilities		393,117			551,292

Total liabilities		495,044			666,248
Minority interests		1,629			2,320
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value, 60,000,000 shares authorized;
24,579,255 and 2,333,591 issued at December 31, 2004
and December 31, 2003, respectively		246			23
Additional paid-in capital		306,943			89,874
Unearned stock compensation		(315	)		(508	)
Accumulated deficit		(81,941	)		(50,107	)
Accumulated other comprehensive income		1,777			1,324
Treasury stock, at cost, 7,211 and nil shares at December 31, 2004
and December 31, 2003, respectively		(76	)		—
Total stockholders’ equity		226,634			40,606

				$
	$	723,307			709,174

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


							2002
							Combined
	2004			2003			Period
				(unaudited)
				($in thousands)
Continuing operations:
							$
(Loss) income from continuing operations	$	(35,846	)	$	(27,074	)		10,254
Depreciation and amortization		27,376			29,761			43,636
Fresh start adjustments		—			—			(33,318	)
Interest income		(647	)		(486	)		(639	)
Interest expense		42,990			28,581			28,273
Preferred stock dividends		9,383			8,092			—
Loss on preferred stock redemption		6,063			—			—
Provision (benefit) for income taxes — continuing operations		228			178			(128	)

	$			$			$
EBITDA from continuing operations		49,547			39,052			48,078

Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate	$			$			$
and other on our consolidated statement of operations		457			4,789			800
Reorganization expenses		—			1,397			22,278
Impairment loss		7,416			12,667			—
Gain on asset dispositions		—			(445	)		—
Casualty losses for damage caused to our properties by the hurricanes that hit the southeastern United States in the third quarter		2,313			—			—
Adjustments to bankruptcy claims reserves		(38	)		(218	)		—

	$			$			$
Adjusted EBITDA from continuing operations		59,695			57,242			71,156


	2004												2003
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter

				(unaudited)												(unaudited)
										($in thousands)
Revenues:
Rooms	$	52,253		$	64,805		$	64,325		$	57,563		$	52,089		$	62,506		$	61,010		$	53,914
Food and beverage		19,555			16,950			19,436			16,488			18,800			16,407			18,977			16,607
Other		2,358			2,806			2,816			2,754			2,567			2,841			2,838			2,858

		74,166			84,561			86,577			76,805			73,456			81,754			82,825			73,379

Operating expenses:
Direct:
Rooms		16,355			18,722			16,960			16,018			16,023			17,697			16,730			15,363
Food and beverage		14,225			12,595			12,713			11,534			12,557			12,030			12,365			11,734
Other		1,885			2,095			2,077			1,972			2,178			2,013			1,842			1,938

		32,465			33,412			31,750			29,524			30,758			31,740			30,937			29,036

		41,702			51,149			54,827			47,281			42,698			50,014			51,888			44,343

Other operating expenses:
Other hotel operating costs		23,790			25,577			23,822			24,072			22,546			24,164			22,797			22,475
Property and other taxes, insurance and leases		5,160			5,597			5,376			5,751			5,343			6,087			6,923			6,661
Corporate and other		3,548			4,519			4,782			4,413			4,612			4,235			6,075			5,970
Casualty gains and losses		295			2,019			—			—			—			—			—			—
Depreciation and amortization		6,635			7,066			6,870			6,805			7,194			7,572			7,573			7,422
Impairment of long-lived assets		6,809			607			—			—			11,286			2			1,378			—
Other operating expenses		46,236			45,385			40,850			41,041			50,981			42,060			44,746			42,528

		(4,535	)		5,764			13,977			6,240			(8,283	)		7,954			7,142			1,815
Other income (expenses):					—			—			—			—			—			—			—
Interest income and other		360			212			66			43			486			114			124			83
Interest expense and other financing costs:		—			—			—			—			—			—			—			—
Preferred stock dividend		—			(865	)		(4,233	)		(4,285	)		(4,065	)		(4,027	)		—
Other interest expense		(7,561	)		(7,350	)		(19,920	)		(8,159	)		(7,718	)		(7,665	)		(6,919	)		(6,279	)
Gain on asset dispositions		—			—			—			—			445			—			—			—
Loss on preferred stock redemption		—			(4,471	)		(1,592	)		—			—			—			—			—

(Loss) income before income taxes, reorganization items and
minority interests		(11,735	)		(6,710	)		(11,702	)		(6,161	)		(19,135	)		(3,624	)		347			(4,381	)
Reorganization items		—			—			—			—			647			—			(808	)		(1,237	)

Loss before income taxes and minority interest		(11,735	)		(6,710	)		(11,702	)		(6,161	)		(18,488	)		(3,624	)		(461	)		(5,618	)
Minority interests		406			503			(71	)		(147	)		1,412			99			(69	)		(148	)

Loss before income taxes — continuing operations		(11,329	)		(6,207	)		(11,773	)		(6,308	)		(17,076	)		(3,525	)		(530	)		(5,767	)
(Provision) benefit for income taxes — continuing operations		259			(337	)		(75	)		(76	)		48			(75	)		(75	)		(76	)
Loss from continuing operations		(11,070	)		(6,544	)		(11,847	)		(6,384	)		(17,028	)		(3,600	)		(605	)		(5,841	)

Discontinued operations:					—			—			—
(Loss) income from discontinued operations before income taxes		(2,694	)		2,807			4,601			(702	)		522			(46	)		(1,836	)		(3,243	)
Income tax benefit (provision)		—			—			—			—			—			—			—			—

(Loss) income from discontinued operations		(2,694	)		2,807			4,601			(702	)		522			(46	)		(1,836	)		(3,243	)

Net loss		(13,764	)		(3,737	)		(7,246	)		(7,087	)		(16,506	)		(3,646	)		(2,441	)		(9,084	)
Preferred stock dividend		—			—			—			—			—			—			(3,818	)		(3,776	)

Net loss attributable to common stock	$	(13,764	)	$	(3,737	)	$	(7,246	)	$	(7,087	)	$	(16,506	)	$	(3,646	)	$	(6,259	)	$	(12,860	)

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


	2004												2003
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter

				(unaudited)												(unaudited)
				($in thousands)												($in thousands)
Continuing operations:
(Loss) income from continuing operations	$	(11,071	)	$	(6,544	)	$	(11,847	)	$	(6,384	)	$	(17,028	)	$	(3,600	)	$	(605	)	$	(5,841	)
Depreciation and amortization		6,635			7,066			6,870			6,805			7,194			7,572			7,573			7,422
Fresh start adjustments		—			—			—			—			—			—			—			—
Interest income		(345	)		(175	)		(80	)		(47	)		(196	)		(72	)		(104	)		(114	)
Interest expense		7,561			7,350			19,920			8,159			7,718			7,665			6,919			6,279
Preferred stock dividends		—			865			4,233			4,285			4,065			4,027						—
Loss on preferred stock redemption		—			4,471			1,592			—			—			—			—			—
Provision (benefit for income taxes — continuing operations		(260	)		337			75			76			(48	)		75			75			76
EBITDA from continuing operations	$	2,520		$	13,370		$	20,763		$	12,894		$	1,705		$	15,667		$	13,858		$	7,822

Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate
and other on consolidated statement of operations	$	90		$	67		$	100		$	200		$	1,269		$	320		$	1,000		$	2,200
Reorganization expenses		—			—			—			—			(648	)		45			800			1,200
Impairment loss		6,809			607			—			—			11,287			2			1,378			—
Gain on asset dispositions		—			—			—			—			(445	)		—			—			—
Casualty losses for damage caused to our properties by the		294			2,019			—			—			—			—			—			—
hurricanes that hit the Southeastern United States in the third
quarter
Adjustments to bankruptcy claims reserves		(38	)		—			—			—			(218	)		—			—			—

Adjusted EBITDA from continuing operations	$	9,675		$	16,063		$	20,863		$	13,094		$	12,950		$	16,034		$	17,036		$	11,222

LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Net Loss (a GAAP measure) for
Three New Held for Sale Assets


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

3445 Peachtree Road, NE, Suite 700, Atlanta, Georgia		30326
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	Lodgian, Inc.

March 14, 2005	By:	Daniel E. Ellis

		Name: Daniel E. Ellis
		Title: Senior Vice President, General Counsel & Secretary


Exhibit No.		Description

99.1		press release dated March 10, 2005


For Immediate Release Contact:
Debi Ethridge Vice President, Finance & Investor Relations dethridge@lodgian.com		Jerry Daly or Carol McCune Daly Gray Public Relations (Media) jerry@dalygray.com

(404) 365-2719		(703) 435-6293


Date of Report (Date of Earliest Event Reported):		March 10, 2005


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