Lodgian, one of the nation’s largest independent owners and operators of full-service hotels, today announced that it has sold the 261-room Holiday Inn Grand Island (Buffalo/Niagara) in upstate New York, to American Hospitality Group, LLC, a private investment group, for $3.35 million. Net proceeds from the sale, approximately $3.2 million, will be used to pay down Lodgian’s long-term debt.
The transaction is the tenth hotel to be sold as part of a previously announced plan to divest 19 non-strategic hotels, an office building, and three parcels of land from its portfolio. In 2003, the hotel generated $0.1 million of EBITDA and a net loss of $0.1 million
Since the program’s announcement in October 2003, Lodgian has reduced debt by approximately $38.7 million with proceeds from the sale of the properties. “While an excellent hotel, the property did not fit our portfolio profile of upper, premium limited-service or mid-market hotels located in major suburban markets,” said Thomas Parrington, Lodgian president and CEO. “We remain on track to complete our asset disposition program in 2004 and are in active negotiations on the remaining hotels to be sold.”
The broker for the transaction was CB Richard Ellis.