LGN Lodgian

ATLANTA, Aug. 5 /PRNewswire-FirstCall/ -- Lodgian, Inc. (NYSE Alternext US: LGN), one of the nation's largest independent hotel owners and operators, today reported results for the 2009 second quarter ended June 30, 2009. The company will host a 10 a.m. Eastern time conference call today to discuss results for the 2009 second quarter. The "36 continuing operations hotels" comprise those Lodgian properties that were not held for sale as of June 30, 2009. Lists of properties, both continuing operations and held for sale, are attached to this press release. Second Quarter 2009 Highlights -- Obtained maturity extensions on $120 million of mortgage debt which matured July 1, 2009, with the terms of the extensions ranging from 90 days to three years. -- Sold two hotels during the 2009 second quarter for gross proceeds of $13.9 million. Statistics for 36 Continuing Operations Hotels 2Q 2Q % Change 2009* 2008* -------- ---- ---- Rooms revenue $40,238 $50,185 -19.8% ------------- ------- ------- ----- RevPAR $65.12 $81.08 -19.7% ------ ------ ------ ----- Total revenue $54,863 $67,902 -19.2% ------------- ------- ------- ----- (Loss)/income from continuing operations $(5,348) $284 n/m ----------------------------- ------- ---- --- EBITDA $7,362 $12,950 -43.2% ------ ------ ------- ----- Adjusted EBITDA (defined below) $11,193 $18,530 -39.6% ------------------------------ ------- ------- ----- Consolidated Financial Results (Loss)/income from continuing operations $(5,348) $284 n/m ----------------------------- ------- ---- --- (Loss)/income from discontinued operations $(1,969) $6,083 n/m ------------------------------- ------- ------ --- Net (loss)/income attributable to common stock $(6,975) $6,367 n/m --------------------------------- ------- ------ --- Net (loss)/income per share attributable to common stock $(0.33) $0.29 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. A reconciliation of Adjusted EBITDA to (loss)/income from continuing operations is included in the tables that accompany this press release. Second Quarter 2009 Results Second quarter 2009 total revenue for continuing operations declined 19.2 percent to $54.9 million, compared to the same period in 2008. During the 2009 second quarter, the displacement of total revenue resulting from renovations at three properties was $0.4 million, compared to $0.6 million in the 2008 second quarter. Loss from continuing operations was $(5.3) million in the 2009 second quarter, compared to income of $0.3 million in the 2008 second quarter. Net loss attributable to common shares was $(7.0) million, or $(0.33) per diluted share in the 2009 second quarter, compared to net income of $6.4 million, or $0.29 per diluted share in the 2008 second quarter. The 2009 second quarter net loss includes total impairment charges of $7.5 million in both continuing operations and discontinued operations. EBITDA from continuing operations declined 43.2 percent from the 2008 second quarter to $7.4 million. Adjusted EBITDA for the same group of properties decreased 39.6 percent, from $18.5 million in the 2008 second quarter to $11.2 million in the 2009 second quarter. Adjusted EBITDA margins for the continuing operations hotels decreased by 690 basis points to 20.4 percent during the 2009 second quarter compared to the 2008 second quarter, due to lower revenues. Management Comments "Our results in the second quarter of 2009 showed the same trend as the hospitality industry in general," said Dan Ellis, Lodgian president and chief executive officer. "Our RevPAR Index for the quarter was relatively flat, indicating that we maintained our fair share within our markets." "Our focus at this time is on cost control, both in our corporate departments and in the field. To this end, we have made significant progress with annualized reductions of $1.0 million in corporate overhead costs and reductions of $3.5 million at the hotels. We continue our efforts to streamline our infrastructure and expect to reap the benefits of these moves in future periods." Asset Disposition Program During the second quarter, two hotels were sold for gross proceeds of $13.9 million. The two hotels were the Holiday Inn Select in Windsor, Ontario, Canada and the Holiday Inn Cromwell Bridge in Towson, Md. Of the net proceeds, $6.8 million was used to reduce debt and the remainder for general corporate purposes. As of August 1, 2009, a total of two properties remained classified as held for sale. During the 2009 second quarter, the Holiday Inn in Phoenix, Ariz. was reclassified to continuing operations from discontinued operations because it no longer met the criteria to be classified as held for sale. Prior to the reclassification, the company's efforts to sell this property had been unsuccessful, and the hotel's operating performance continued to decline, primarily due to oversupply in the local market. The company had concluded that the hotel's market value was less than the $9.4 million of mortgage debt which encumbers the property. Accordingly, the company began discussions with the lender during the 2009 second quarter aimed at returning the property and a receiver has recently been appointed. The company is currently not making mortgage payments on this loan. The mortgage debt on this hotel is non-recourse to Lodgian, except in certain limited circumstances and is not cross-collateralized with any other of the company's mortgage debt. The company does not believe the debt recourse provisions of this loan will be triggered by this transaction. Balance Sheet Update As of June 30, 2009, 34 hotels were encumbered as collateral for various mortgage debt facilities totaling approximately $323.6 million. A summary of mortgage debt facilities is included in the supplemental information attached to this release. Approximately $120 million of mortgage debt was previously scheduled to mature on July 1, 2009. This mortgage debt, which was originated in June 2004 by Merrill Lynch and securitized into the collateralized mortgage-backed securities market, had been divided into three pools referred to by the company as the Merrill Lynch Fixed Rate Pools #1, #3 and #4 (the company repaid the Merrill Lynch Fixed Rate Pool #2 in 2007). The company obtained extensions of these pools with terms ranging from 90 days to three years. As of July 1, 2009, the principal amount of the Merrill Lynch Fixed Rate Pool #1 ("Pool #1") was $36.5 million (June 30, 2009 balance of $38.7 million). The company and the special servicer for Pool #1 have agreed to two separate six-month extensions of the maturity date for this indebtedness. Assuming that the second six-month extension is exercised by the company, the maturity date of Pool #1 will be July 1, 2010. The interest rate on Pool #1 will remain fixed at 6.58% during the term of the extension. The company has paid the special servicer an extension fee of approximately $183,000 and will pay an additional extension fee of approximately $266,000 if the company chooses to exercise the second six month extension. Additionally, the company made a principal reduction payment of $2 million (reducing the principal balance of Pool #1 to $36.5 million as of July 1, 2009), and will make an additional $1 million principal reduction payment on or before December 30, 2009 if it exercises the second six month extension. The company also has agreed to make additional principal reduction payments of approximately $83,000 per month during the first six month extension and approximately $166,000 per month during the second six month extension, if exercised. As of July 1, 2009, the principal amount of the Merrill Lynch Fixed Rate Pool #4 ("Pool #4") was $35.1 million (June 30, 2009 balance of $35.6 million). The company and the special servicer for Pool #4 have agreed to extend the maturity date to July 1, 2012. The interest rate on Pool #4 will remain fixed at 6.58%. In connection with this agreement, the company paid an extension fee of approximately $175,000 and made a principal reduction payment of $500,000. The parties also have agreed to revise the allocated loan amounts for each property serving as collateral for Pool #4 and to allow partial prepayments of the indebtedness. Pursuant to this agreement, the company may release individual assets from Pool #4 by paying the lender specified amounts (in excess of the allocated loan amounts) in connection with property sales or refinancing. The company also agreed to pay the lender an "exit fee" upon a full or partial repayment of the loan. The amount of this fee will increase each year but, assuming the loan is held for the full three year term, will effectively increase the current interest rate by 100 basis points per annum. The company also has issued a full recourse guaranty of Pool #4 in connection with this amendment. The company and the special servicer for Pool #3 have entered into a second extension agreement to further extend the maturity date of this indebtedness until October 1, 2009 (the previous extension ended on August 1, 2009). Given the extension of the maturity date, the company is not in default of the original loan, which had a balance of $45.7 million as of June 30, 2009. The 60-day extension is intended to provide the parties an opportunity to reach an agreement on a longer-term maturity extension. The company and the special servicer are currently negotiating a longer-term maturity extension for Pool #3; however, the company can provide no assurances that the parties will reach such an agreement. In the event that the company is unable to achieve a long-term extension of Pool #3, the company expects that anticipated cash flow from the hotels securing Pool #3 may not be sufficient to meet the related debt service obligations and it may be necessary to transfer the properties securing this indebtedness to the lender in satisfaction of the company's obligations. Conference Call Lodgian will hold a conference call to discuss its 2009 second quarter results today, August 5, 2009 at 10 a.m. Eastern time. To hear the webcast, interested parties may visit the company's website at http://www.lodgian.com/ and click on Investor Relations and then Webcast, Q2 2009 Lodgian Earnings Conference Call. A recording of the call will be available by telephone until midnight on Wednesday, August 12, 2009 by dialing (800) 406-7325, reference number 4119462. 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. 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 our 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 nation's largest independent hotel owners and operators. The company currently owns and/or manages a portfolio of 38 hotels with 7,078 rooms located in 22 states. Of the company's 38-hotel portfolio, 18 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), two are Hilton brands, and five are affiliated with other nationally recognized franchisors including Starwood, 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: http://www.lodgian.com/. Forward-Looking Statements This press release contains 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 negotiations with special servicers and lenders, optional maturity extensions, property dispositions, 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 or extend maturing mortgage indebtedness, 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, 2008, and as updated in our Forms 10-Q for the quarters ended March 31 and June 30, 2009. 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. Contact: Debi Neary Ethridge Vice President, Finance & Investor Relations (404) 365-2719 LODGIAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 30, 2009 December 31, 2008 ------------- ----------------- ($ in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $23,752 $20,454 Cash, restricted 10,327 8,179 Accounts receivable (net of allowances: 2009 - $328; 2008 - $263) 8,184 7,115 Inventories 3,116 2,983 Prepaid expenses and other current assets 14,166 21,257 Assets held for sale 5,622 33,021 ----- ------ Total current assets 65,167 93,009 Property and equipment, net 450,560 447,366 Deposits for capital expenditures 7,588 11,408 Other assets 5,110 3,631 ----- ----- $528,425 $555,414 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $5,647 $7,897 Other accrued liabilities 22,929 22,897 Advance deposits 1,953 1,293 Current portion of long-term liabilities 66,720 124,955 Liabilities related to assets held for sale 803 16,167 --- ------ Total current liabilities 98,052 173,209 Long-term liabilities 258,104 194,800 ------- ------- Total liabilities 356,156 368,009 Commitments and contingencies Stockholders' equity: Common stock, $.01 par value, 60,000,000 shares authorized; 25,144,364 and 25,075,837 issued at June 30, 2009 and December 31, 2008, respectively 252 251 Additional paid-in capital 331,319 330,785 Accumulated deficit (119,143) (105,246) Accumulated other comprehensive income 33 1,262 Treasury stock, at cost, 3,826,157 and 3,806,000 at June 30, 2009 and December 31, 2008, respectively (39,690) (39,647) ------- ------- Total stockholders' equity attributable to common stock 172,771 187,405 Noncontrolling interest (502) 0 ---- --- Total stockholders' equity 172,269 187,405 ------- ------- $528,425 $555,414 ======== ======== LODGIAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Six Months Ended June 30, Ended June 30, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- ($ in thousands, ($ in thousands, except share data) except share data) Revenues: Rooms $40,238 $50,185 $77,807 $95,296 Food and beverage 12,655 15,564 23,658 27,820 Other 1,970 2,153 3,689 4,234 ----- ----- ----- ----- Total revenues 54,863 67,902 105,154 127,350 ------ ------ ------- ------- Direct operating expenses: Rooms 10,951 12,391 21,264 23,825 Food and beverage 8,380 9,996 16,132 18,969 Other 1,335 1,556 2,651 2,967 ----- ----- ----- ----- Total direct operating expenses 20,666 23,943 40,047 45,761 ------ ------ ------ ------ 34,197 43,959 65,107 81,589 Other operating expenses: Other hotel operating costs 15,211 18,107 31,138 36,388 Property and other taxes, insurance, and leases 4,562 3,851 8,854 8,294 Corporate and other 3,573 3,471 7,181 9,668 Casualty losses, net 15 - 96 - Depreciation and amortization 8,800 7,989 17,293 15,455 Impairment of long-lived assets 3,816 5,580 4,325 7,721 ----- ----- ----- ----- Total other operating expenses 35,977 38,998 68,887 77,526 ------ ------ ------ ------ Operating (loss) income (1,780) 4,961 (3,780) 4,063 Other income (expenses): Interest income and other 37 276 82 666 Interest expense (3,658) (4,920) (7,579) (10,238) ------ ------ ------ ------- (Loss) income before income taxes and noncontrolling interest (5,401) 317 (11,277) (5,509) Benefit (provision) for income taxes - continuing operations 53 (33) (18) (85) -- --- --- --- (Loss) income from continuing operations (5,348) 284 (11,295) (5,594) ------ --- ------- ------ Discontinued operations: (Loss) income from discontinued operations before income taxes (2,031) 5,977 (3,141) 4,520 Benefit (provision) for income taxes - discontinued operations 62 106 37 (77) -- --- -- --- (Loss) income from discontinued operations (1,969) 6,083 (3,104) 4,443 ------ ----- ------ ----- Net (loss) income (7,317) 6,367 (14,399) (1,151) Less: Net loss attributable to noncontrolling interest 342 - 502 - --- --- --- --- Net (loss) income attributable to common stock $(6,975) $6,367 $(13,897) $(1,151) ======= ====== ======== ======= Basic and diluted net (loss) income per share attributable to common stock $(0.33) $0.29 $(0.65) $(0.05) ====== ===== ====== ====== LODGIAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER (UNAUDITED) 2009 2008 ---- ---- Second First Fourth Third Quarter Quarter Quarter Quarter ------- ------- ------- ------- ($ in thousands) Revenues: Rooms $40,238 $37,569 $39,434 $47,251 Food and beverage 12,655 11,003 13,700 12,656 Other 1,970 1,719 1,902 2,189 ----- ----- ----- ----- 54,863 50,291 55,036 62,096 ------ ------ ------ ------ Direct operating expenses: Rooms 10,951 10,313 11,216 12,385 Food and beverage 8,380 7,752 9,132 9,169 Other 1,335 1,316 1,353 1,566 ----- ----- ----- ----- 20,666 19,381 21,701 23,120 ------ ------ ------ ------ 34,197 30,910 33,335 38,976 Other operating expenses: Other hotel operating costs 15,211 15,927 16,423 18,633 Property and other taxes, insurance and leases 4,562 4,292 4,296 4,314 Corporate and other 3,573 3,608 3,067 4,373 Casualty losses (gains), net 15 81 1,153 (56) Restructuring - - - - Depreciation and amortization 8,800 8,493 8,352 8,123 Impairment of long-lived assets 3,816 509 354 1,393 ----- --- --- ----- Other operating expenses 35,977 32,910 33,645 36,780 ------ ------ ------ ------ Operating (loss) income (1,780) (2,000) (310) 2,196 Other income (expenses): Interest income and other 37 45 146 242 Other interest expense (3,658) (3,921) (4,720) (4,967) ------ ------ ------ ------ (Loss) income before income taxes (5,401) (5,876) (4,884) (2,529) Benefit (provision) for income taxes - continuing operations 53 (71) (71) 79 -- --- --- -- (Loss) income from continuing operations (5,348) (5,947) (4,955) (2,450) ------ ------ ------ ------ Discontinued operations: (Loss) income from discontinued operations before income taxes (2,031) (1,110) 210 (3,681) Benefit (provision) for income taxes 62 (25) 95 (52) -- --- -- --- (Loss) income from discontinued operations (1,969) (1,135) 305 (3,733) ------ ------ --- ------ Net (loss) income $(7,317) $(7,082) $(4,650) $(6,183) Less: Net loss (income) attributable to noncontrolling interest 342 160 - - --- --- --- --- Net (loss) income attributable to common stock $(6,975) $(6,922) $(4,650) $(6,183) ======= ======= ======= ======= 2008 2007 ---- ---- Second First Fourth Third Quarter Quarter Quarter Quarter ------- ------- ------- ------- ($ in thousands) Revenues: Rooms $50,185 $45,111 $41,859 $47,745 Food and beverage 15,564 12,256 14,600 13,042 Other 2,153 2,081 1,834 2,162 ----- ----- ----- ----- 67,902 59,448 58,293 62,949 ------ ------ ------ ------ Direct operating expenses: Rooms 12,391 11,434 10,742 12,188 Food and beverage 9,996 8,973 9,186 9,592 Other 1,556 1,411 1,310 1,534 ----- ----- ----- ----- 23,943 21,818 21,238 23,314 ------ ------ ------ ------ 43,959 37,630 37,055 39,635 Other operating expenses: Other hotel operating costs 18,107 18,281 16,697 18,239 Property and other taxes, insurance and leases 3,851 4,443 4,421 4,147 Corporate and other 3,471 6,197 4,248 5,575 Casualty losses (gains), net - - - - Restructuring - - (25) 1,258 Depreciation and amortization 7,989 7,466 7,571 7,332 Impairment of long-lived assets 5,580 2,141 796 512 ----- ----- --- --- Other operating expenses 38,998 38,528 33,708 37,063 ------ ------ ------ ------ Operating (loss) income 4,961 (898) 3,347 2,572 Other income (expenses): Interest income and other 276 390 912 1,312 Other interest expense (4,920) (5,318) (5,946) (6,114) ------ ------ ------ ------ (Loss) income before income taxes 317 (5,826) (1,687) (2,230) Benefit (provision) for income taxes - continuing operations (33) (52) (1,678) 1,062 --- --- ------ ----- (Loss) income from continuing operations 284 (5,878) (3,365) (1,168) --- ------ ------ ------ Discontinued operations: (Loss) income from discontinued operations before income taxes 5,977 (1,457) (5,978) 1,889 Benefit (provision) for income taxes 106 (183) 1,270 (674) --- ---- ----- ---- (Loss) income from discontinued operations 6,083 (1,640) (4,708) 1,215 ----- ------ ------ ----- Net (loss) income $6,367 $(7,518) $(8,073) $47 Less: Net loss (income) attributable to noncontrolling interest - - - - --- --- --- --- Net (loss) income attributable to common stock $6,367 $(7,518) $(8,073) $47 ====== ======= ======= === LODGIAN, INC. AND SUBSIDIARIES Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Income/(Loss) from Continuing Operations (a GAAP measure) (UNAUDITED) Three Months Six Months Ended June 30, Ended June 30, -------------- -------------- 2009 2008 2009 2008 ---- ---- ---- ---- ($ in thousands) ($ in thousands) Continuing operations: (Loss) income from continuing operations $(5,348) $284 $(11,295) $(5,594) Net loss attributable to noncontrolling interest 342 - 502 - --- --- --- --- (Loss) income from continuing operations attributable to common stock $(5,006) $284 $(10,793) $(5,594) Depreciation and amortization 8,800 7,989 17,293 15,455 Interest income (37) (276) (82) (666) Interest expense 3,658 4,920 7,579 10,238 Provision for income taxes (53) 33 18 85 --- -- -- -- EBITDA from continuing operations $7,362 $12,950 $14,015 $19,518 ------ ------- ------- ------- Adjustments to EBITDA: Impairment of long-lived assets $3,816 $5,580 $4,325 $7,721 Casualty losses, net 15 - 96 - -- -- -- -- Adjusted EBITDA from continuing operations $11,193 $18,530 $18,436 $27,239 ------- ------- ------- ------- Lodgian, Inc. Summary of Mortgage Debt as of June 30, 2009 ($ in thousands) (UNAUDITED) Number Debt Maturity of Hotels Balance Date Interest rate --------- ------- ---- ------------- Mortgage Debt IXIS 3 $20,828 Mar-10 (1) LIBOR plus 2.95%, capped at 7.45% IXIS 1 18,412 Dec-09 (1) LIBOR plus 2.90%, capped at 7.90% Goldman Sachs 10 130,000 May-10 (2) LIBOR plus 1.50%, capped at 6.50% Merrill Lynch Mortgage Lending, Inc. - Fixed #1 4 38,669 Dec-09 (3) 6.58% Merrill Lynch Mortgage Lending, Inc. - Fixed #3 6 45,739 Oct-09 6.58% Merrill Lynch Mortgage Lending, Inc. - Fixed #4 6 35,576 Jul-12 6.58% Wachovia - Pinehurst 1 2,954 Jun-10 5.78% Wachovia - Phoenix West 1 9,411 Jan-11 6.03% Wachovia - Palm Desert 1 5,706 Feb-11 6.04% Wachovia - Worcester 1 16,328 Feb-11 6.04% -- ------ ---- Total Mortgage Debt 34 $323,623 4.20%(4) == ======== ------------------------------------------------------------------------- (1) - Upon the satisfaction of certain conditions, a one-year extension option is available beyond the maturity date. (2) - Upon the satisfaction of certain conditions, two one-year extension options are available beyond the maturity date. (3) - The current maturity date is December 31, 2009 with an option to extend to July 1, 2010. (4) - Annual effective weighted average cost of debt at June 30, 2009. Lodgian, Inc. 2009 Supplemental Operating Information (UNAUDITED) Three months ended Hotel Room June 30, June 30, Increase Count Count 2009 2008 (Decrease) ----- ----- -------- -------- ---------- 36 6,789 All Continuing Operations hotels Occupancy 66.0% 75.3% (12.4)% ADR $98.66 $107.69 ($9.03) (8.4)% RevPAR $65.12 $81.08 ($15.96) (19.7)% RevPAR Index 99.2% 99.3% (0.1)% (0.1)% 27 4,801 Continuing Operations less hotels under renovation in the first and second quarter 2008 or 2009 Occupancy 66.0% 75.9% (13.0)% ADR $96.19 $105.22 ($9.03) (8.6)% RevPAR $63.48 $79.82 ($16.34) (20.5)% RevPAR Index 100.6% 101.9% (1.3)% (1.3)% 12 1,398 Marriott Hotels Occupancy 68.9% 77.8% (11.4)% ADR $100.74 $112.51 ($11.77) (10.5)% RevPAR $69.42 $87.54 ($18.12) (20.7)% RevPAR Index 110.9% 111.4% (0.5)% (0.4)% 2 396 Hilton Hotels Occupancy 61.9% 72.7% (14.9)% ADR $112.66 $114.69 ($2.03) (1.8)% RevPAR $69.71 $83.42 ($13.71) (16.4)% RevPAR Index 99.3% 99.7% (0.4)% (0.4)% 18 4,120 IHG Hotels Occupancy 66.0% 75.7% (12.8)% ADR $100.85 $107.53 ($6.68) (6.2)% RevPAR $66.52 $81.36 ($14.84) (18.2)% RevPAR Index 98.1% 98.0% 0.1% 0.1% 4 875 Other Brands - Radisson, Wyndham and Four Points by Sheraton Occupancy 63.4% 70.7% (10.3)% ADR $78.18 $96.74 ($18.56) (19.2)% RevPAR $49.57 $68.36 ($18.79) (27.5)% RevPAR Index 82.2% 84.7% (2.5)% (3.0)% Lodgian, Inc. 2009 Supplemental Operating Information (UNAUDITED) Six months ended Hotel Room June 30, June 30, Increase Count Count 2009 2008 (Decrease) ----- ----- --------- --------- ---------- 36 6,789 All Continuing Operations hotels Occupancy 63.7% 71.0% (10.3)% ADR $99.36 $108.44 ($9.08) (8.4)% RevPAR $63.27 $76.98 ($13.71) (17.8)% RevPAR Index 98.4% 98.4% 0.0% 0.0% 27 4,775 Continuing Operations less hotels under renovation in the first quarter 2008 or 2009 Occupancy 65.4% 72.8% (10.2)% ADR $97.17 $106.86 ($9.69) (9.1)% RevPAR $63.51 $77.74 ($14.23) (18.3)% RevPAR Index 99.6% 99.9% (0.3)% (0.3)% 12 1,398 Marriott Hotels Occupancy 66.9% 72.0% (7.1)% ADR $102.27 $113.45 ($11.18) (9.9)% RevPAR $68.41 $81.67 ($13.26) (16.2)% RevPAR Index 113.0% 110.8% 2.2% 2.0% 2 396 Hilton Hotels Occupancy 59.0% 65.8% (10.3)% ADR $110.69 $112.59 ($1.90) (1.7)% RevPAR $65.34 $74.12 ($8.78) (11.8)% RevPAR Index 97.9% 97.4% 0.5% 0.5% 18 4,120 IHG Hotels Occupancy 62.7% 71.6% (12.4)% ADR $101.13 $108.18 ($7.05) (6.5)% RevPAR $63.40 $77.44 ($14.04) (18.1)% RevPAR Index 96.1% 98.0% (1.9)% (1.9)% 4 875 Other Brands - Radisson, Wyndham and Four Points by Sheraton Occupancy 65.2% 68.9% (5.4)% ADR $81.94 $99.56 ($17.62) (17.7)% RevPAR $53.46 $68.60 ($15.14) (22.1)% RevPAR Index 84.6% 81.4% 3.2% 3.9% Lodgian, Inc. Hotel Portfolio as of August 1, 2009 Location Brand Rooms -------- ----- ----- Continuing Operations --------------------- Bentonville, AR Courtyard by Marriott 90 Residence Inn by Little Rock, AR Marriott 96 Phoenix, AZ Crowne Plaza 295 Phoenix, AZ Holiday Inn 144 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 Residence Inn by Dedham, MA Marriott 81 Worcester, MA Crowne Plaza 243 Baltimore (BWI Airport), MD Holiday Inn 259 Baltimore (Inner Harbor), MD Holiday Inn 365 Columbia, MD Hilton 152 Silver Spring, MD Crowne Plaza 231 Springhill Suites by Pinehurst, NC Marriott 107 Fairfield Inn by Merrimack, NH 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 100 Dallas (DFW Airport), TX Wyndham 282 Houston, TX Crowne Plaza 294 --- 6,788 ===== Held For Sale ------------- Troy, MI Ramada Plaza 185 Memphis, TN Independent 105 --- 290 === DATASOURCE: Lodgian, Inc. CONTACT: Debi Neary Ethridge, Vice President, Finance & Investor Relations of Lodgian, Inc., +1-404-365-2719, Web Site: http://www.lodgian.com/

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