According to Ed Rohling, chief executive officer of Lodgian, "This transaction is a major part of the execution of our plan to streamline the portfolio."
The sold hotels are:
Hotel City/State # of Rooms
1) Holiday Inn Sheffield, AL 202
2) Holiday Inn Express Dothan, AL 112
3) Holiday Inn Pensacola, FL 152
4) Holiday Inn Express Pensacola, FL 122
5) Holiday Inn Winter Haven, FL 228
6) Holiday Inn Lansing, MI 244
7) Holiday Inn Lancaster, PA 189
8) Holiday Inn Greentree Pittsburgh, PA 201
9) Holiday Inn York, PA 100
10) Crowne Plaza Cedar Rapids, IA 275
11) Clarion Hotel Louisville, KY 393
12) Quality Inn Dothan, AL 102
13) Ramada Charleston, SC 197
14) Ramada Plaza Macon, GA 297
15) Park Inn Brunswick, GA 126
16) Augusta West Inn Augusta, GA 117
Total rooms: 3,057
Total net sales proceeds of $62.4 million will be used for general corporate purposes. "This brings our total cash -- in restricted and unrestricted funds -- to more than $110 million," said James MacLennan, Lodgian's chief financial officer.
Below is a reconciliation of GAAP net loss from operations with Adjusted EBITDA (a non-GAAP financial measure) for the 16 hotels for the trailing 12 months ended March 31, 2007:
(in thousands)
Net (loss)/income from operations ($10,013)
Depreciation and amortization 3,060
Income taxes (6,548)
Interest expense 4,098
Gain on extinguishment of debt 639
Impairment loss 14,656
Adjusted EBITDA $5,892
Hunter Realty Associates, Inc., represented Lodgian in the transaction.
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, gains or losses related to extinguishment of debt, casualty losses or gains related to damage to and insurance recoveries for properties damaged by hurricane, fire or flood, business interruption insurance proceeds, and minority interest adjustments related to casualty gains/losses and business interruption insurance proceeds.
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 51 hotels with 9,166 rooms located in 27 states and Canada. Of the company's 51-hotel portfolio, 31 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 and Residence Inn by Marriott), 4 are Hilton brands (Hilton and Doubletree Club) and 2 are Radisson by Carlson. Two hotels are independent, unbranded properties. For more information about Lodgian, visit the company's Web site:
www.lodgian.com.
Debi Neary Ethridge
