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 Lodgian Sells West Palm Beach Office Building, Retains
Ownership of Connecting Crowne Plaza Hotel
Proceeds To Be Used to Pay Down Debt and For Property Renovations
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ATLANTA, Ga., December 15, 2003 — Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, today announced the sale of an office building in West Palm Beach, Fla. to a private investment group for $9.76 million.  Lodgian will retain ownership of the connecting 219-room Crowne Plaza hotel.

The sale is part of a previously announced plan by the company to dispose of 19 non-core hotels and other non-strategic property. 
Proceeds from the sales will be used 


Crowne Plaza West Palm Beach 
1601 Belvedere Road
West Palm Beach, Florida
to pay down debt and to re-invest in the company’s remaining properties.
Located at 1601 Belvedere Road, the property is located within one mile of Palm Beach International Airport.  The two-tower, five-story office building contains approximately 98,000 square feet of office space.  Cushman Wakefield of Florida, Inc. brokered the transaction for Lodgian.

“We are making excellent progress on the sale of our non-core assets,” said W. Thomas Parrington, president and chief executive officer.  “We have sold one small hotel and are in active negotiations on the remaining 18 hotels slated for disposition.  We expect to close on several additional properties in the coming months.  It appears that the hotel industry is in the early stages of a recovery, which is helping to stabilize our pricing power.”

Parrington said the company also is moving aggressively forward with its extensive renovation program to enhance the competitive positions of its 77 core mid-market and first-class hotels.  “We have invested $30 million through the first nine months of 2003, and expect to invest up to an additional $45 million through the end of 2004, bringing our total renovation program to approximately $75 million over a 24-month period.  These renovations are having a positive impact on our hotels’ bottom lines and have been well received by our guests.” 

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 96  hotels with 18,167 rooms located in 30 states and Canada.  Of the company’s 96 hotel portfolio, 81 are under the InterContinental Hotels Group (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express) and Marriott brands (Courtyard by Marriott, Fairfield Inn and Residence Inns), and 10 are affiliated with four other nationally recognized hospitality franchises.  Five hotels are independent, unbranded properties. 

This press release includes forward-looking statements related to Lodgian’s operations that are based on management’s current expectations, estimates and projections. 


 
Contact:
Debi Ethridge
Vice President, Finance & Investor Relations
dethridge@lodgian.com
(404) 365-2719
www.lodgian.com
Also See: Lodgian Names W. Thomas Parrington President and CEO / July 2003
Court Approves Lodgian Reorganization Plan for Final Two Chapter 11 Debtors; Confirms Plan for
Remaining 18 Lodgian-owned Hotels / April 2003


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