• Lodgian Announces Filing of Form 8-K with Unaudited Year-End and Fourth Quarter 1999 Results
• Actual 2000 first quarter revenue and operating margins in-line with expectations
• Company�s current liquidity, working capital and interest coverage more than adequate
• Same-unit RevPAR increase of 5.9% for 1999 among best for public lodging companies

Because of the substantial number and dollar amount of adjustments that have been recorded in the fourth quarter of 1999, management is considering the extent, if any, to which such adjustments affect a prior period and, whether taken together are sufficiently material to require a restatement. Of the charges recorded in the fourth quarter, totaling approximately $85 million, $61.7 million is directly related to the asset impairment and goodwill charges the Company had announced previously. The balance of the charges are a combination of cash and non-cash charges including professional fees, reserves for litigation, systems and merger integration costs, and franchise and brand conversion costs, among others.

The Company continues to believe that the adjustments recorded in the fourth quarter will have no material affect on its business, the market value of the Company�s assets and the revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) guidance management has previously provided for the year 2000. This view is supported by the Company�s actual first quarter RevPAR, revenue and operating margins which were in-line with management�s expectations (pre-asset sales). Moreover, management continues to anticipate the Company�s second quarter RevPAR to be in-line with previously communicated expectations, with an increase of approximately 5% over 1999 levels.

The Company has provided its 1999 unaudited financial statements to its senior secured lenders and will deliver the required financial statements upon completion of the audit. Although the delivery of audited financial statements is required pursuant to its credit agreement, the Company is confident that its lenders will work with the Company during the completion of the 1999 audit. Furthermore, the unaudited financial results are in compliance with the Company�s financial covenants, including the consolidated EBITDA to interest coverage ratio.  Although the Company is not currently entitled to receive advances under its existing working capital facility, management is confident that it has sufficient cash balances, working capital and cash generating capability to adequately fund its business without additional advances under the revolving credit facility.  The Company�s annual meeting will be scheduled immediately after filing of the 1999 Form 10-K.

Key Accomplishments

• Repositioning and renovation strategy continues as the Company has spent approximately $30.0 million to date in 2000 on capital expenditures, thereby continuing to improve the asset quality of the portfolio.
• For 1999, twelve of the Company�s non-core assets were sold, generating a total of $21 million in cash.
• Year-to-date 2000, the Company has realized another $27 million in proceeds from four additional asset sales, with more hotels slated for disposition.
• In the first quarter of 2000, the Company converted its Clarion-Pittsburgh, PA to a Crowne Plaza, completed the repositioning of its 150 room Comfort Inn-Boston to a Courtyard by Marriott and opened the new 181 room Hilton Garden in Lake Oswego, Oregon.

For the fourth quarter 1999, Lodgian�s 131 consolidated hotels consisted
of 77 stabilized hotels, 33 stabilizing hotels and 21 hotels being repositioned.  Total RevPAR, composed of $42.31 on an occupancy rate of 58.4 percent and $72.47 average daily rate (ADR), was as follows:
 

The same-unit RevPAR increase of 4.3 percent for the fourth quarter 1999 consisted of 58.4 percent occupancy at a $71.84 ADR on properties owned and operated for at least 12 months. Same-unit RevPAR for the fourth quarters of 1998 and 1999 was as follows:
 

Summary of 1999 RevPAR Results

For the year 1999, total RevPAR for Lodgian�s 131 consolidated hotels,
composed of $47.03 on an occupancy rate of 63.1 percent and $74.58 ADR, was as follows:
 

Same-unit RevPAR for the year of 1999 increased 5.9 percent to $47.03 on an occupancy rate of 63.2 percent and $74.38 ADR. For the years 1998 and 1999, same-unit RevPAR was as follows:
 

About Lodgian

Lodgian, Inc. owns or manages a portfolio of 127 hotels with approximately
24,000 rooms in 35 states and Canada.  The hotels are primarily full service, providing food and beverage service, as well as meeting facilities.

Substantially all of Lodgian�s hotels are affiliated with nationally recognized hospitality brands such as Holiday Inn, Crowne Plaza, Marriott, Sheraton, Hilton and Westin.
Lodgian�s common shares are listed on the New York Stock Exchange under the symbol �LOD.� Lodgian is a component of both the Russell 2000® Index, representing small cap stocks, and the Russell 3000® Index, representing the broader market.

Statements in this press release which are not strictly historical are �forward-looking� statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve known and unknown risks, which may cause
the company�s actual results in the future to differ materially from expected results.