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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 EMX7IHhhTEUgvAT87M1VOXvPVTOonbVPuJBowAiplfwopeK7EAcV9r8Sa7hJOuBN
 RLW+wT/zWtOPUdJyS+JQnQ==

<SEC-DOCUMENT>0001181431-04-037415.txt : 20040728
<SEC-HEADER>0001181431-04-037415.hdr.sgml : 20040728
<ACCEPTANCE-DATETIME>20040728143502
ACCESSION NUMBER:		0001181431-04-037415
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040726
FILED AS OF DATE:		20040728

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			OCM REAL ESTATE OPPORTUNITIES FUND II L P
		CENTRAL INDEX KEY:			0001076007

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14537
		FILM NUMBER:		04935653

	BUSINESS ADDRESS:	
		STREET 1:		333 SOUTH GRAND AVE
		STREET 2:		28TH FLOOR
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90071

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LODGIAN INC
		CENTRAL INDEX KEY:			0001066138
		STANDARD INDUSTRIAL CLASSIFICATION:	HOTELS & MOTELS [7011]
		IRS NUMBER:				522093696
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		3445 PEACHTREE ROAD N E SUITE 700
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30326
		BUSINESS PHONE:		4043649400

	MAIL ADDRESS:	
		STREET 1:		3445 PEACHTREE ROAD N E SUITE 700
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30326

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			OAKTREE CAPITAL MANAGEMENT LLC
		CENTRAL INDEX KEY:			0000949509
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14537
		FILM NUMBER:		04935654

	BUSINESS ADDRESS:	
		STREET 1:		333 S GRAND AVENUE 28TH FL
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90071
		BUSINESS PHONE:		2138306300

	MAIL ADDRESS:	
		STREET 2:		333 S GRAND AVE 28TH FL
		CITY:			LOS ANGLES
		STATE:			CA
		ZIP:			90071
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd49112.xml
<DESCRIPTION>PREFERRED STOCK REDEMPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-07-26</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001066138</issuerCik>
        <issuerName>LODGIAN INC</issuerName>
        <issuerTradingSymbol>LGN</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000949509</rptOwnerCik>
            <rptOwnerName>OAKTREE CAPITAL MANAGEMENT LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>333 SOUTH GRAND AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>28TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>LOS ANGELES</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>90071</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001076007</rptOwnerCik>
            <rptOwnerName>OCM REAL ESTATE OPPORTUNITIES FUND II L P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>333 SOUTH GRAND AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>28TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>LOS ANGELES</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>90071</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Series A Preferred Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-07-26</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>933347</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>28.16</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>see footnotes</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                    <footnoteId id="F4"/>
                    <footnoteId id="F5"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The Issuer called for redemption, effective July 26, 2004 (the &quot;Redemption&quot;), all of the Issuer's outstanding shares of Series A Preferred Stock (&quot;Preferred Stock&quot;), at a redemption price per share of $28.16.</footnote>
        <footnote id="F2">The reporting person, Oaktree Capital Management, LLC (&quot;Oaktree&quot;), is a registered investment adviser under the Investment Advisers Act of 1940, as amended, acting as: (i) the general partner of OCM Real Estate Opportunities Fund II, L.P., a Delaware limited partnership (&quot;Fund II&quot;), (ii) the managing member of OCM Real Estate Opportunities Fund III GP, LLC (&quot;Fund III GP&quot;) and (iii) the investment manager of a third-party separate account managed by Oaktree (the &quot;Oaktree Account&quot;).  Fund III GP is the general partner of OCM Real Estate Opportunities Fund III, L.P., a Delaware limited partnership (&quot;Fund III&quot;), and OCM Real Estate Opportunities Fund IIIA, L.P., a Delaware limited partnership (&quot;Fund IIIA&quot;).  This form is also being filed on behalf of Fund II.</footnote>
        <footnote id="F3">Oaktree beneficially owned 933,347 shares of Preferred Stock redeemed in the Redemption, which include: 747,790 shares owned indirectly as general partner of Fund II, 100,828 shares owned indirectly as the managing member of Fund III GP, the general partner of Fund III, 3,119 shares owned indirectly as the managing member of Fund III GP, the general partner of Fund IIIA, and 81,610 shares owned indirectly as investment manager of the Oaktree Account.  Fund II beneficially owned 747,790 shares of Preferrd Stock redeemed in the Redemption, which Fund II owned directly.  After giving effect to the Redemption neither Oaktree nor Fund II beneficially own any shares of Preferred Stock.</footnote>
        <footnote id="F4">Oaktree disclaims beneficial ownership of the reported securities except to the extent of its pecuniary interest therein.  Fund II disclaims beneficial ownership of the reported securities that it does not own directly.  The filing of this Form 4 shall not be deemed an admission that Oaktree or Fund II is the beneficial owner of any securities not held directly for its account for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or otherwise.</footnote>
        <footnote id="F5">Oaktree is a limited liability company managed by an executive committee, the members of which are Howard S. Marks, Bruce A. Karsh, David M. Kirchheimer, Sheldon M. Stone, D. Richard Masson, Larry W. Keele, Stephen A. Kaplan, Russel S. Bernard, John W. Moon, Kevin L. Clayton and John B. Frank.  Each of such persons may be deemed a beneficial owner of the securities listed herein by virtue of such status as members of Oaktree.  Each such person disclaims beneficial ownership of the securities listed herein and the filing of this Form 4 shall not be construed as an admission that such  person is the beneficial owner of any securities covered by this Form 4, except to the extent of any pecuniary interest therein.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Oaktree Capital Management, LLC by Russel S. Bernard, Principal</signatureName>
        <signatureDate>2004-07-28</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>OCM Real Estate Opportunites Fund II, L.P. by Oaktree Capital Management, LLC, general partner, by Marc Porosoff, Senior Vice President, Legal</signatureName>
        <signatureDate>2004-07-28</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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