Lodgian Reports 2009 Third Quarter Results

Share Name	Share Symbol	Market	Type
Lodgian	AMEX:LGN	AMEX	Ordinary Share

Lodgian (AMEX:LGN)
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ATLANTA, Nov. 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 third quarter ended September 30, 2009. The company will host a 10 a.m. Eastern Time conference call today to discuss results for the 2009 third quarter. The "35 continuing operations hotels" comprise those Lodgian properties that were not held for sale as of September 30, 2009. Lists of properties, both continuing operations and held for sale, are attached to this press release. Statistics for 35 Continuing Operations Hotels 3Q 3Q 2009* 2008* % Change ---- ---- -------- Rooms revenue $38,095 $46,679 -18.4% RevPAR $62.32 $76.24 -18.3% Total revenue $50,592 $61,400 -17.6% Impairment of long-lived assets $(34,165) $(1,393) n/m (Loss)/income from continuing operations $(39,789) $(2,259) n/m EBITDA $(27,128) $10,362 n/m Adjusted EBITDA (defined below) $7,075 $11,698 -39.5% Consolidated Financial Results (Loss)/income from continuing operations $(39,789) $(2,259) n/m Income/(loss) from discontinued operations $2,999 $(3,924) n/m Net (loss) attributable to common stock $(36,201) $(6,183) n/m Net (loss) per share attributable to common stock $(1.70) $(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 EBITDA and Adjusted EBITDA to (loss)/income from continuing operations is included in the tables that accompany this press release. Third Quarter 2009 Results Third quarter 2009 total revenue for continuing operations declined 17.6 percent to $50.6 million, compared to the same period in 2008. Loss from continuing operations was $(39.8) million in the 2009 third quarter, compared to a loss of $(2.3) million in the 2008 third quarter. The 2009 third quarter loss was driven primarily by a $34.2 million impairment charge largely related to seven hotels which are expected to be returned to their lenders. Six of these hotels are expected to be returned to the lender after unsuccessful negotiations to extend and modify the Merrill Lynch Fixed Rate Pool 3 loan agreement. Net loss attributable to common shares was $(36.2) million, or $(1.70) per diluted share in the 2009 third quarter, compared to a net loss of $(6.2) million, or $(0.29) per diluted share in the 2008 third quarter. The 2009 third quarter net loss includes total impairment charges of $35.4 million in both continuing operations and discontinued operations, including the $34.2 million impairment charge previously mentioned. EBITDA from continuing operations declined from $10.4 million in the 2008 third quarter to $(27.1) million, including impairment charges. Adjusted EBITDA for the same group of properties, which excludes the effect of impairment charges, decreased 39.5 percent, from $11.7 million in the 2008 third quarter to $7.1 million in the 2009 third quarter. Adjusted EBITDA margins for the continuing operations hotels decreased by 510 basis points to 14.0 percent during the 2009 third quarter compared to the 2008 third quarter due to a significant decline in revenues, despite on-going cost reduction efforts. Management Comments "Our results, and the hotel industry as a whole, continue to be impacted by the effects of the global economic slowdown," said Dan Ellis, Lodgian president and chief executive officer. "Every hotel is competing hard for every piece of business. We have been successful in both finding new business and attracting previous accounts back to our hotels. Nonetheless, it remains a fiercely competitive environment. We gave up a little market share in the third quarter, but our continuing operations portfolio still retains a slight edge over its competitive set in revenue per available room (RevPAR), with our RevPAR Index at 100.6. "We continue our strategic review of the portfolio, evaluating each of our hotels in terms of debt coverage, equity and long-term strategic value, with the goal of further strengthening the company," he said. Asset Disposition Program and Balance Sheet Update As of November 1, 2009, one property remained classified as held for sale. Subsequent to the close of the 2009 third quarter, the company sold the Ramada Plaza in Troy, Mich. for gross proceeds of $3.0 million. The company provided seller financing in the amount of $1.75 million, and net proceeds were used for general corporate purposes. During the 2009 third quarter, the company surrendered control of the Holiday Inn in Phoenix, Ariz. to a court-appointed receiver. As a result, all assets and liabilities were excluded from the company's consolidated balance sheet as of September 30, 2009. The company does not believe the limited recourse provisions of the loan secured by the Holiday Inn will be triggered by this transaction. As of September 30, 2009, 33 hotels were encumbered as collateral for various mortgage debt facilities totaling approximately $310.5 million. A summary of mortgage debt facilities is included in the supplemental information attached to this release. The company recently reported that, in conjunction with the development of a strategic plan, it has stopped servicing the debt secured by the Crowne Plaza in Worcester, Mass., and intends to convey the hotel to the lender in full satisfaction of the debt, which had a principal balance of $16.3 million as of September 30, 2009. On a trailing twelve month basis, the cash flow from the hotel was insufficient to service the debt on the property. The company is now in default on this loan, and the lender has accelerated repayment of the loan. The company intends to cooperate with the lender in transferring this hotel to the lender's control. As previously disclosed, the Merrill Lynch Fixed Rate Pool 3 securitized mortgage debt, with a principal balance of $45.5 million, matured on October 1, 2009 and is now in default. The company had been in discussions with the special servicer regarding extension and modification of the loan; however, no agreement has been reached at this time. The company is now in discussions with the special servicer regarding returning the six hotels to the lender in full satisfaction of the debt. This mortgage indebtedness is non-recourse to the company except in certain limited circumstances, which the company believes do not apply in this case, and is not cross-collateralized with any of the company's other indebtedness. Conference Call Lodgian will hold a conference call to discuss its 2009 third quarter results today, November 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, Q3 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Thursday, November 12, 2009 by dialing (800) 406-7325, reference number 4173127. 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 their 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 manages a portfolio of 36 hotels with 6,749 rooms located in 21 states. Of the company's 36-hotel portfolio, 17 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, 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 four 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) September 30, December 31, 2009 2008 -------------- ------------- ($ in thousands, except share data) ASSETS Current assets: Cash and cash equivalents $24,647 $20,454 Cash, restricted 9,419 8,179 Accounts receivable (net of allowances: 2009 - $257; 2008 - $263) 7,035 7,115 Inventories 3,100 2,983 Prepaid expenses and other current assets 15,342 21,257 Assets held for sale 4,554 33,021 ----- ------ Total current assets 64,097 93,009 Property and equipment, net 403,815 447,366 Deposits for capital expenditures 5,586 11,408 Other assets 4,893 3,631 ----- ----- $478,391 $555,414 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $5,152 $7,897 Other accrued liabilities 23,674 22,897 Advance deposits 1,619 1,293 Current portion of long-term liabilities 102,614 124,955 Liabilities related to assets held for sale 607 16,167 --- ------ Total current liabilities 133,666 173,209 Long-term liabilities 208,935 194,800 ------- ------- Total liabilities 342,601 368,009 Commitments and contingencies Stockholders' equity: Common stock, $.01 par value, 60,000,000 shares authorized; 25,148,819 and 25,075,837 issued at September 30, 2009 and December 31, 2008, respectively 252 251 Additional paid-in capital 331,601 330,785 Accumulated deficit (155,344) (105,246) Accumulated other comprehensive income 64 1,262 Treasury stock, at cost, 3,827,603 and 3,806,000 at September 30, 2009 and December 31, 2008, respectively (39,692) (39,647) ------- ------- Total stockholders' equity attributable to common stock 136,881 187,405 Noncontrolling interest (1,091) - ------ --- Total stockholders' equity 135,790 187,405 ------- ------- $478,391 $555,414 ======== ======== LODGIAN, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- ($ in thousands, ($ in thousands, except share data) except share data) Revenues: Rooms $38,095 $46,679 $114,415 $139,891 Food and beverage 10,469 12,545 33,852 40,011 Other 2,028 2,176 5,689 6,376 ----- ----- ----- ----- Total revenues 50,592 61,400 153,956 186,278 ------ ------ ------- ------- Direct operating expenses: Rooms 10,952 12,200 31,818 35,562 Food and beverage 7,784 9,070 23,706 27,740 Other 1,264 1,548 3,881 4,473 ----- ----- ----- ----- Total direct operating expenses 20,000 22,818 59,405 67,775 ------ ------ ------ ------ 30,592 38,582 94,551 118,503 Other operating expenses: Other hotel operating costs 15,670 18,287 46,229 53,885 Property and other taxes, insurance, and leases 4,147 4,226 12,829 12,338 Corporate and other 4,289 4,373 11,458 13,742 Casualty losses, net 38 (57) 133 (57) Depreciation and amortization 8,774 8,120 26,067 23,578 Impairment of long-lived assets 34,165 1,393 35,349 9,114 ------ ----- ------ ----- Total other operating expenses 67,083 36,342 132,065 112,600 ------ ------ ------- ------- Operating (loss) income (36,491) 2,240 (37,514) 5,903 Other income (expenses): Interest income and other 16 241 98 907 Interest expense (3,304) (4,821) (10,598) (14,768) ------ ------ ------- ------- (Loss) income before income taxes and noncontrolling interest (39,779) (2,340) (48,014) (7,958) (Provision) benefit for income taxes - continuing operations (10) 81 (29) (6) --- -- --- -- (Loss) income from continuing operations (39,789) (2,259) (48,043) (7,964) ------- ------ ------- ------ Discontinued operations: Income (loss) from discontinued operations before income taxes 2,841 (3,870) (3,342) 759 Benefit (provision) for income taxes - discontinued operations 158 (54) 196 (129) --- --- --- ---- Income (loss) from discontinued operations 2,999 (3,924) (3,146) 630 ----- ------ ------ --- Net (loss) income (36,790) (6,183) (51,189) (7,334) Less: Net loss attributable to noncontrolling interest 589 - 1,091 - --- --- ----- --- Net (loss) income attributable to common stock $(36,201) $(6,183) $(50,098) $(7,334) ======== ======= ======== ======= Basic and diluted net (loss) income per share attributable to common stock $(1.70) $(0.29) $(2.35) $(0.33) ====== ====== ====== ====== LODGIAN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER (UNAUDITED) 2009 Third Second First Quarter Quarter Quarter ------- ------- ------- ($ in thousands) Revenues: Rooms $38,095 $39,685 $36,635 Food and beverage 10,469 12,545 10,838 Other 2,028 1,958 1,703 ----- ----- ----- 50,592 54,188 49,176 ------ ------ ------ Direct operating expenses: Rooms 10,952 10,784 10,082 Food and beverage 7,784 8,284 7,638 Other 1,264 1,319 1,298 ----- ----- ----- 20,000 20,387 19,018 ------ ------ ------ 30,592 33,801 30,158 Other operating expenses: Other hotel operating costs 15,670 14,931 15,628 Property and other taxes, insurance and leases 4,147 4,471 4,211 Corporate and other 4,289 3,564 3,605 Casualty losses (gains), net 38 14 81 Restructuring - - - Depreciation and amortization 8,774 8,800 8,493 Impairment of long-lived assets 34,165 719 465 ------ --- --- Other operating expenses 67,083 32,499 32,483 ------ ------ ------ Operating (loss) income (36,491) 1,302 (2,325) Other income (expenses): Interest income and other 16 37 45 Other interest expense (3,304) (3,515) (3,779) ------ ------ ------ (Loss) income before income taxes (39,779) (2,176) (6,059) (Provision) benefit for income taxes - continuing operations (10) 53 (72) --- -- --- (Loss) income from continuing operations (39,789) (2,123) (6,131) ------- ------ ------ Discontinued operations: Income (loss) from discontinued operations before income taxes 2,841 (5,256) (927) Benefit (provision) for income taxes 158 62 (24) --- -- --- Income (loss) from discontinued operations 2,999 (5,194) (951) ----- ------ ---- Net (loss) income $(36,790) $(7,317) $(7,082) Less: Net loss (income) attributable to noncontrolling interest 589 342 160 --- --- --- Net (loss) income attributable to common stock $(36,201) $(6,975) $(6,922) ======== ======= ======= 2008 2007 Fourth Third Second First Fourth Quarter Quarter Quarter Quarter Quarter ------- ------- ------- ------- ------- ($ in thousands) Revenues: Rooms $38,732 $46,679 $49,364 $43,848 $40,730 Food and beverage 13,532 12,545 15,404 12,062 14,429 Other 1,886 2,176 2,138 2,062 1,819 ----- ----- ----- ----- ----- 54,150 61,400 66,906 57,972 56,978 ------ ------ ------ ------ ------ Direct operating expenses: Rooms 11,026 12,200 12,179 11,183 10,497 Food and beverage 9,015 9,070 9,851 8,819 9,054 Other 1,333 1,548 1,537 1,388 1,288 ----- ----- ----- ----- ----- 21,374 22,818 23,567 21,390 20,839 ------ ------ ------ ------ ------ 32,776 38,582 43,339 36,582 36,139 Other operating expenses: Other hotel operating costs 16,075 18,287 17,719 17,879 16,285 Property and other taxes, insurance and leases 4,223 4,226 3,760 4,352 4,334 Corporate and other 3,063 4,373 3,484 5,885 4,248 Casualty losses (gains), net 1,152 (57) - - - Restructuring - - - - (25) Depreciation and amortization 8,352 8,120 7,989 7,469 7,464 Impairment of long-lived assets 354 1,393 5,580 2,141 796 --- ----- ----- ----- --- Other operating expenses 33,219 36,342 38,532 37,726 33,102 ------ ------ ------ ------ ------ Operating (loss) income (443) 2,240 4,807 (1,144) 3,037 Other income (expenses): Interest income and other 147 241 276 390 912 Other interest expense (4,577) (4,821) (4,775) (5,172) (5,790) ------ ------ ------ ------ ------ (Loss) income before income taxes (4,873) (2,340) 308 (5,926) (1,841) (Provision) benefit for income taxes - continuing operations (74) 81 (24) (63) (2,262) --- -- --- --- ------ (Loss) income from continuing operations (4,947) (2,259) 284 (5,989) (4,103) ------ ------ --- ------ ------ Discontinued operations: Income (loss) from discontinued operations before income taxes 199 (3,870) 5,986 (1,357) (5,824) Benefit (provision) for income taxes 98 (54) 97 (172) 1,854 -- --- -- ---- ----- Income (loss) from discontinued operations 297 (3,924) 6,083 (1,529) (3,970) --- ------ ----- ------ ------ Net (loss) income $(4,650) $(6,183) $6,367 $(7,518) $(8,073) Less: Net loss (income) attributable to noncontrolling interest - - - - - --- --- --- --- --- Net (loss) income attributable to common stock $(4,650) $(6,183) $6,367 $(7,518) $(8,073) ======= ======= ====== ======= ======= LODGIAN, INC. AND SUBSIDIARIES Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Income/(Loss) from Continuing Operations (a GAAP measure) (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ---- ---- ---- ---- ($ in thousands) ($ in thousands) Continuing operations: (Loss) income from continuing operations $(39,789) $(2,259) $(48,043) $(7,964) Net loss attributable to noncontrolling interest 589 - 1,091 - --- --- ----- --- (Loss) income from continuing operations attributable to common stock $(39,200) $(2,259) $(46,952) $(7,964) Depreciation and amortization 8,774 8,120 26,067 23,578 Interest income (16) (239) (99) (904) Interest expense 3,304 4,821 10,598 14,768 Provision (benefit) for income taxes 10 (81) 29 6 -- --- -- - EBITDA from continuing operations $(27,128) $10,362 $(10,357) $29,484 -------- ------- -------- ------- Adjustments to EBITDA: Impairment of long-lived assets $34,165 $1,393 $35,349 $9,114 Casualty losses, net 38 (57) 133 (57) -- --- --- --- Adjusted EBITDA from continuing operations $7,075 $11,698 $25,125 $38,541 ------ ------- ------- ------- Lodgian, Inc. Summary of Mortgage Debt as of September 30, 2009 ($ in thousands) (UNAUDITED) Encumbered Interest Maturity Debt DSCR Hotels rate Date Balance (n) ----------- --------- ---- ------- ----- Mortgage Debt LIBOR plus May Goldman Sachs 10 hotels (a) 1.50% (b) 2010 (c) $130,000 3.00 Merrill Lynch Fixed Rate July Pool 1 4 hotels (d) 6.58% 2010 36,125 1.39 Merrill Lynch Fixed Rate October Pool 3 6 hotels (e) 6.58% 2009 45,500 0.46 Merrill Lynch Fixed Rate July Pool 4 6 hotels (f) 6.58% (g) 2012 34,868 1.11 LIBOR plus March IXIS 3 hotels (h) 2.95% (i) 2010 (j) 20,753 1.35 Holiday Inn LIBOR plus December IXIS Hilton Head 2.90% (k) 2009 (l) 18,353 1.85 Wachovia- Crowne Plaza February Worcester Worcester 6.04% 2011 16,270 0.36 Holiday Inn Wachovia- Palm Express February Desert Palm Desert 6.04% 2011 5,676 0.46 Springhill Wachovia- Suites June Pinehurst Pinehurst 5.78% 2010 2,937 1.30 ---- ----- 4.08% (m) $310,482 ======== Notes: (a) The hotels that secure this debt are: Crowne Plaza Albany; Holiday Inn BWI; Residence Inn Dedham; Hilton Ft. Wayne; Radisson Kenner; Courtyard Lafayette; Holiday Inn Meadow Lands; Holiday Inn Santa Fe; Crowne Plaza Silver Spring; and Courtyard Tulsa. (b) We have purchased an interest rate cap that caps LIBOR at 5.0% and expires in May 2011. (c) This loan can be extended for as many as two years, subject to satisfying certain conditions. (d) The hotels that secure this debt are: Courtyard Atlanta-Buckhead; Marriott Denver; Four Points Philadelphia; and Holiday Inn Strongsville. (e) The hotels that secure this debt are: Courtyard Abilene; Courtyard Bentonville; Courtyard Florence; Holiday Inn Inner Harbor; Crowne Plaza Houston; and Fairfield Inn Merrimack. (f) The hotels that secure this debt are: Hilton Columbia; Wyndham DFW; Residence Inn Little Rock; Holiday Inn Myrtle Beach; Courtyard Paducah; and Crowne Plaza West Palm Beach. (g) There is an exit fee associated with this loan. The amount of the fee will increase each year but, assuming the loan is held for the full term, will effectively increase the current interest rate by 100 basis points per annum. (h) The hotels that secure this debt are: Crowne Plaza Phoenix; Radisson Phoenix; Crowne Plaza Pittsburgh. (i) We have purchased an interest rate cap that caps LIBOR at 4.5% and expires in March 2011. (j) This loan can be extended for one additional year, subject to satisfying certain conditions. (k) We have purchased an interest rate cap that caps LIBOR at 5.0% and expires in December 2010. (l) This loan can be extended for one additional year, subject to satisfying certain conditions. (m) Annual effective weighted average cost of debt at September 30, 2009 (n) Debt Service Coverage Ratio ("DSCR") is calculated using trailing twelve month NOI divided by actual trailing twelve month debt service, both through September 2009. Lodgian, Inc. 2009 Supplemental Operating Information (UNAUDITED) Three months ended Hotel Room September September Increase Count Count 30, 2009 30, 2008 (Decrease) ------ ----- -------- -------- ---------------- 35 6,644 All Continuing Operations hotels Occupancy 65.0% 71.7% (9.3)% ADR $95.89 $106.37 ($10.48) (9.9)% RevPAR $62.32 $76.24 ($13.92) (18.3)% RevPAR Index 100.6% 102.3% (1.7)% (1.7)% 31 5,964 Continuing Operations less hotels under renovation in the third quarter 2008 or 2009 Occupancy 64.5% 72.1% (10.5)% ADR $97.69 $107.83 ($10.14) (9.4)% RevPAR $63.04 $77.74 ($14.70) (18.9)% RevPAR Index 102.4% 104.4% (2.0)% (1.9)% 12 1,398 Marriott Hotels Occupancy 69.4% 77.1% (10.0)% ADR $98.27 $114.09 ($15.82) (13.9)% RevPAR $68.25 $87.99 ($19.74) (22.4)% RevPAR Index 109.2% 110.2% (1.0)% (0.9)% 2 396 Hilton Hotels Occupancy 54.9% 68.3% (19.6)% ADR $108.36 $112.15 ($3.79) (3.4)% RevPAR $59.46 $76.63 ($17.17) (22.4)% RevPAR Index 90.0% 100.2% (10.2)% (10.2)% 17 3,975 IHG Hotels Occupancy 64.1% 71.0% (9.7)% ADR $99.53 $106.20 ($6.67) (6.3)% RevPAR $63.78 $75.42 ($11.64) (15.4)% RevPAR Index 101.7% 103.5% (1.8)% (1.7)% 4 875 Other Brands - Radisson, Wyndham and Four Points by Sheraton Occupancy 66.6% 67.5% (1.3)% ADR $71.39 $90.44 ($19.05) (21.1)% RevPAR $47.54 $61.02 ($13.48) (22.1)% RevPAR Index 84.3% 86.2% (1.9)% (2.2)% Lodgian, Inc. 2009 Supplemental Operating Information (UNAUDITED) Nine months ended Hotel Room September September Increase Count Count 30, 2009 30, 2008 (Decrease) ----- ----- --------- -------- --------------- 35 6,644 All Continuing Operations hotels Occupancy 64.1% 71.1% (9.8)% ADR $98.30 $107.81 ($9.51) (8.8)% RevPAR $63.04 $76.69 ($13.65) (17.8)% RevPAR Index 100.5% 100.6% (0.1)% (0.1)% 24 4,324 Continuing Operations less hotels under renovation in the first, second or third quarter 2008 or 2009 Occupancy 64.8% 72.4% (10.5)% ADR $95.13 $104.55 ($9.42) (9.0)% RevPAR $61.66 $75.66 ($14.00) (18.5)% RevPAR Index 101.0% 101.9% (0.9)% (0.9)% 12 1,398 Marriott Hotels Occupancy 67.8% 73.7% (8.0)% ADR $100.89 $113.68 ($12.79) (11.3)% RevPAR $68.35 $83.79 ($15.44) (18.4)% RevPAR Index 111.8% 110.4% 1.4% 1.3% 2 396 Hilton Hotels Occupancy 57.6% 66.7% (13.6)% ADR $109.94 $112.44 ($2.50) (2.2)% RevPAR $63.36 $74.96 ($11.60) (15.5)% RevPAR Index 95.3% 98.4% (3.1)% (3.2)% 17 3,975 IHG Hotels Occupancy 63.2% 71.3% (11.4)% ADR $100.84 $107.63 ($6.79) (6.3)% RevPAR $63.68 $76.71 ($13.03) (17.0)% RevPAR Index 100.3% 101.5% (1.2)% (1.2)% 4 875 Other Brands - Radisson, Wyndham and Four Points by Sheraton Occupancy 65.7% 68.4% (3.9)% ADR $78.34 $96.54 ($18.20) (18.9)% RevPAR $51.46 $66.05 ($14.59) (22.1)% RevPAR Index 84.5% 82.9% 1.6% 1.9% Lodgian, Inc. Hotel Portfolio as of November 1, 2009 Location Brand Rooms Continuing Operations --------------------- Bentonville, AR Courtyard by Marriott 90 Little Rock, AR Residence Inn by Marriott 96 Phoenix, AZ Crowne Plaza 295 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 Dedham, MA Residence Inn by 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 Pinehurst, NC Springhill Suites by Marriott 107 Merrimack, NH Fairfield Inn by 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 --- 6,644 ===== Held For Sale ------------- Memphis, TN Independent 105 DATASOURCE: Lodgian, Inc. CONTACT: Debi Neary Ethridge, Vice President, Finance & Investor Relations, +1-404-365-2719, Web Site: http://www.lodgian.com/

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