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Lodgian, Inc. (AMEX:LGN), one of the nation's largest independent owners and operators of full-service hotels, today announced that since February 19, 2004, it has sold four hotels in separate transactions for an aggregate price of $11.3 million, of which $9.3 million was used to reduce the company's debt. Two of the four hotels were sold in the first quarter and two properties have been sold in the second quarter to date, with the net proceeds to be recorded in the appropriate quarters. In 2003, the four hotels had EBITDA of $(0.9) million and a net loss of $5.1 million. Including these sales, the company has divested eight hotels and an office building as part of its previously announced plan to sell 19 non-strategic hotels, an office building and three parcels of land. Proceeds from the combined sales to date have been used to reduce debt by $21.8 million.
"We have an additional seven hotels and the three land parcels under contract," said Thomas Parrington, Lodgian president and chief executive officer. "We are on target to complete the disposition program by year end."
The Sold Hotels
The 214-room Holiday Inn, Ft. Mitchell, Ky., was sold in February 2004 for $2.3 million, of which $2.2 million was used to reduce debt. In 2003, the hotel generated $(0.2) million of EBITDA and a net loss of $1.1 million.
The 214-room Holiday Inn Express, Pensacola, Fla., was sold in March 2004 for $3.0 million, of which $2.7 million was used to reduce debt. In 2003, the hotel generated $0.3 million of EBITDA and a net loss of $1.1 million.
The 243-room Downtown Plaza, in Cincinnati, Ohio was sold in April 2004 for $1.2 million, of which $1.1 million was used to reduce debt. In 2003, the hotel generated $(0.5) million of EBITDA and a net loss of $1.8 million.
The 154-room Courtyard by Marriott, Revere, Mass., was sold in April 2004 for $4.8 million, of which $3.3 million were used to reduce debt. In 2003, the hotel generated $(0.5) million of EBITDA and a net loss of $1.1 million.
Below is a reconciliation of unaudited 2003 net loss with EBITDA:
(in thousands)
Ft.
Mitchell Pensacola Cincinnati Revere Total
--------- --------- ---------- -------- --------
Net loss ($1,123) ($1,052) ($1,769) ($1,132) ($5,076)
Depreciation and
amortization 136 135 197 286 754
Impairment of long
lived assets 679 1,096 976 2 2,753
Interest expense 138 136 113 323 710
EBITDA ($170) $315 ($483) ($521) ($859)
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 89 hotels with 16,806 rooms located in 30 states and Canada. Of the company's 89-hotel portfolio, 75 are under the InterContinental Hotels Group (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express) and Marriott brands (Courtyard by Marriott, Fairfield Inn and Residence Inns), and 10 are affiliated with four other nationally recognized hospitality franchisors. Four hotels are independent, unbranded properties. For more information about Lodgian, visit the company's Web site: www.lodgian.com.
Forward-Looking Statements
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.
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