Lodgian Reports 2009 First Quarter Results

ATLANTA, GA, May 6, 2009 /PRNewswire-FirstCall/ -- Lodgian, Inc. (NYSE Alternext US: LGN), one of the nation's largest independent hotel owners and operators, today reported results for the 2009 first quarter ended March 31, 2009.

First quarter 2009 total revenue for continuing operations declined 15.2 percent to $49.2 million, compared to the same 2008 period.

During the 2009 first quarter, the displacement of total revenue resulting from renovations at three properties was $0.7 million, compared to $0.9 million in the 2008 first quarter.

Loss from continuing operations was $(6.1) million in the 2009 first quarter, compared to $(6.0) million in the 2008 first quarter.

Net loss attributable to common shares was $(6.9) million, or $(0.32) per diluted share in the 2009 first quarter, compared to a net loss of $(7.5) million, or $(0.33) per diluted share in the 2008 first quarter.

EBITDA from continuing operations was flat to the prior year's first quarter at $6.3 million.

Adjusted EBITDA for the same group of properties decreased 18.8 percent, from $8.5 million in the 2008 first quarter to $6.9 million in the 2009 first quarter.

Adjusted EBITDA margins for the continuing operations hotels decreased by 60 basis points to 14.0 percent during the 2009 first quarter compared to the 2008 first quarter, due to lower revenues.

"Our hotels fared reasonably well in a poor market in January and February, posting RevPAR index increases in each of those two months, giving us 10 consecutive months of improvement," said Peter Cyrus, Lodgian interim president and chief executive officer.

"Discount pricing intensified in March, resulting in a relatively flat RevPAR Index for the quarter, off just 20 basis points compared to the 2008 first quarter," he said.

"We continue to be very focused on cost control and revenue improvement. In the first quarter, we reduced total rooms payroll by over 10 percent and increased our food and beverage margins by 260 basis points," he said.

"We have renegotiated pricing with numerous vendors at both the corporate and property levels and are beginning to see the benefits of those efforts."

CONTACT: Debi Neary Ethridge, Vice President, Finance & Investor Relations of Lodgian, Inc., +1-404-365-2719, dethridge@lodgian.com/

Web Site: http://www.lodgian.com/