Lodgian, Inc. (Form: 8-K/A)

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We recapitalized the balance sheet, completing a $192 million stock offering in June. Proceeds were used to redeem our 12.25% preferred stock, to provide sufficient funds to accelerate the renovation of our hotels, and to have adequate cash reserves. Additional shares were issued to redeem the balance of our preferred stock.

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We completed our first acquisition in December, an upscale select service SpringHill Suites in Pinehurst, North Carolina.

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We refinanced a significant portion of our debt, extending maturities and fixing the interest rate on the majority of the debt.

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We made substantial progress on renovating our hotels, completing 13 hotels and beginning another three. During 2002, 2003, and 2004 we completed major renovations at 28 hotels.

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The series of severe hurricanes last fall damaged eight of our hotels and two of these remain closed: the Crowne Plaza in West Palm Beach, Florida and the Holiday Inn Oceanfront in Melbourne, Florida.

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We diverted resources to the damaged hotels which delayed the renovation program we had planned to complete in 2004.

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Changes in brand standards implemented by our franchisors significantly increased our capital expenditures and operating expenses. For example, in 2004 we installed ten new property management systems in our Holiday Inns and Crowne Plazas. In addition to capital costs of almost $700,000, these installations had one time operating expenses of over $300,000. In 2005, we will be installing new systems in our remaining Crowne Plazas and Holiday Inns and will incur an additional $1.5 million in one time operating expenses.

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Other costs, including brand fee based expenses, expenses related to brand standards, and costs related to providing free high speed internet access, put further pressure on our margins.

These challenges heavily impacted our fourth quarter results. Our overall RevPAR from continuing operations increased 3.9% in the fourth quarter, but excluding the closed hotels and hotels under major renovations, the increase was 4.8%. During the quarter our Marriott branded hotels and our Hilton branded hotels showed significant improvement but results at our InterContinental branded hotels were disappointing, with a RevPAR increase of just 3.9%.

The net result was a disappointing fourth quarter. Adjusted EBITDA was $9.6 million, which was down from the fourth quarter of 2003 by 26%. Excluding the two hotels closed by hurricane damage, our Adjusted EBITDA for the quarter was down from 2003 by 18%.

Our reported Adjusted EBITDA from continuing operations for 2004 was $59.7 million after the impact of the hotels closed by the hurricanes ($1.7 to $2.1 million) and the impact from revenues lost due to the extensive renovations taking place during the year ($1.5 to $1.8 million).

These challenges have continued into 2005 and will have a significant impact on our first and second quarters. During the first quarter, we had displaced room revenues of approximately $5 million from hotels damaged by hurricanes and approximately $1 million from hotels being renovated. With reduced revenues and increased operating expenses, our first quarter EBITDA margin will be down from the first quarter of 2004.

We expect to see improvement later this year continuing into 2006 as we realize the benefit of our renovations and the reopening of our hurricane damaged hotels. For example, during the first quarter of 2005 we saw a 9.1% RevPAR increase at hotels that were renovated in 2003 and 2004.

During 2005, we will be working to complete our renovations and maximize our revenues as hotels are completed or reopened. As a result, 2005 will be a transitional year leading to significant improvements in 2006.

We will be giving guidance for 2005 in our first quarter earnings release, which will be issued on May 5, 2005.


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			Fourth Quarter

($ in thousands)
Continuing operations:
(Loss) income from continuing operations	$	(11,071	)	$	(17,028	)
Depreciation and amortization		6,635			7,194
Fresh start adjustments		—			—
Interest income		(345	)		(196	)
Interest expense		7,561			7,718
Preferred stock dividends		—			4,065
Loss on preferred stock redemption		—			—
Provision (benefit for income taxes — continuing operations		(260	)		(48	)
EBITDA from continuing operations	$	2,520		$	1,705

Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate	$	60		$	1,289
and other on consolidated statement of operations
Reorganization expenses		—			(647	)
Impairment loss		6,809			11,287
Gain on asset dispositions		—			(445	)
Casualty losses for damage caused to our properties by the		294			—
hurricanes that hit the Southeastern United States in the third
quarter
Adjustments to bankruptcy claims reserves		(38	)		(218	)

Adjusted EBITDA from continuing operations	$	9,645		$	12,971

Continuing operations excluding Closed Hotels due to Hurricane Damage:
(Loss) income from continuing operations	$	(9,852	)	$	(17,168	)
Depreciation and amortization		6,403			6,926
Fresh start adjustments		—			—
Interest income		(342	)		(194	)
Interest expense		7,300			7,491
Preferred stock dividends		—			4,065
Loss on preferred stock redemption		—			—
Provision (benefit for income taxes — continuing operations		(260	)		(48	)
EBITDA from continuing operations	$	3,250		$	1,072

Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate		60			1,289
and other on consolidated statement of operations
Reorganization expenses		—			(647	)
Impairment loss		6,763			11,249
Gain on asset dispositions		—			(445	)
Casualty losses for damage caused to our properties by the		83			—
hurricanes that hit the Southeastern United States in the third
quarter
Adjustments to bankruptcy claims reserves		(37	)		(214	)
Adjusted EBITDA from continuing operations	$	10,119		$	12,304


LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
with Loss from Continuing Operations (a GAAP measure)
	2004
	($in thousands)
Continuing operations:
(Loss) income from continuing operations	$	(35,846	)
Depreciation and amortization		27,376
Fresh start adjustments		—
Interest income		(647	)
Interest expense		42,990
Preferred stock dividends		9,383
Loss on preferred stock redemption		6,063
Provision (benefit) for income taxes — continuing operations		228

EBITDA from continuing operations	$	49,547


Adjustments to EBITDA:
Post-emergence Chapter 11 expenses, included in corporate and other on our consolidated statement of operations	$	457
Reorganization expenses		—
Impairment loss		7,416
Gain on asset dispositions		—
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	)

Adjusted EBITDA from continuing operations	$	59,697


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.

May 2, 2005	By:	Daniel E. Ellis

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


Exhibit No.		Description

99.1		W. Thomas Parrington annual meeting comments
99.2		Reconcilation of EBITDA and Adjusted EBITDA (non-GAAP measures)


Date of Report (Date of Earliest Event Reported):		April 28, 2005


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