Lodgian today announced that it sold the 397-room Holiday Inn Select Niagara Falls, N.Y., to an undisclosed buyer for $14.3 million. All of the net proceeds were used to reduce the company’s debt. For the twelve months ended May 31, 2005, the hotel produced Adjusted EBITDA (a non-GAAP financial measure) of $148,000 and a net loss from operations of $(987,000).
The sale is part of the company’s previously announced plan to dispose of non-core properties from its portfolio. Since the program was announced in 2003, Lodgian has sold 18 hotels, including this property, two land parcels and an office building, and reduced its debt by $70.2 million. Jones Lang LaSalle Hotels- Select Service Division brokered the sale of the property.
“We currently are marketing four hotels and one land parcel for sale,” said W. Thomas Parrington, president and chief executive officer. “Concurrently, we are wrapping up our renovation program at our core hotels and working to re-open our hurricane damaged hotels.”