Lodgian hast sold the 105-room Fairfield Inn, Jackson, Tenn., to an undisclosed buyer for $2.5 million.Approximately $1.6 million
of net proceeds were used to reduce the company’s debt. For the twelve months
ended December 31, 2005, the primarily exterior corridor hotel produced
Adjusted EBITDA (a non-GAAP financial measure) of $82,000 and a net loss from
operations of $(98,000).
The sale is part of the company’s previously announced plan to dispose of
non-core properties in its portfolio. Since the program was announced in
2003, Lodgian has sold 21 hotels, including this property, two land parcels
and an office building, and reduced its debt by $73.3 million. Jones Lang
LaSalle Hotels-Select Service Division brokered the sale of the property.
“We currently are marketing seven hotels and one land parcel for sale,”
said Ed Rohling, president and chief executive officer. “Aside from these
selective dispositions, we invested $83 million in renovations in 2005 to
improve the overall quality of our hotel product. Our goal going forward is
to maximize the performance of these assets.”