Lodgian has today announced that it sold the 390-room Holiday Inn St. Louis-Airport in Missouri, to an undisclosed buyer for $3.5 million. All of the net proceeds will be used for general corporate purposes. For the twelve months ended May 31, 2005, the hotel produced negative Adjusted EBITDA (a non-GAAP financial measure) of $(417,000) and a net loss from operations of $(996,000). The sale is part of the company’s previously announced plan to dispose of non-core properties from its hotel portfolio. Lodgian has sold 17 hotels, two land parcels and an office building, and reduced its debt by $56.0 million since the program was announced in 2003. Jones Lang LaSalle Hotels-Select Service Division brokered the sale of the property.
“We continue to make steady progress on our planned disposition program,” said W. Thomas Parrington, president and chief executive officer. “Five non-core properties and a land parcel remain earmarked for sale, and we expect to bring this program to completion by year end. Renovation projects continue at many of our core properties. The quality of our portfolio has improved significantly over the past two years, and when we complete these two programs, we will be highly competitive in our respective markets.”