Lodgian Receives Audit Report with Going Concern Explanation

ATLANTA, GA, Mar. 17, 2010—Lodgian, Inc. (NYSE Amex Equities: LGN) today announced that the audit report of its independent registered public accounting firm, Deloitte & Touche LLP, included in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (the “Form 10-K”), while expressing an unqualified opinion regarding the company’s audited financial statements, identified matters which raise substantial doubt about the company’s ability to continue as a going concern.

The company’s announcement does not represent any changes or amendment to its 2009 financial statements or to its Form 10-K which was filed with the Securities and Exchange Commission on March 16, 2010.

As disclosed in the Form 10-K, the audit report raised substantial doubt about the company’s ability to continue as a going concern because approximately $55.7 million of the company’s mortgage debt is scheduled to mature in 2010.

This mortgage debt cannot be extended without the approval of the loan servicers. The largest facility, the Merrill Lynch Fixed Rate Pool 1 indebtedness with a current principal balance of $33.9 million, matures on July 1, 2010.

To address this pending maturity, the company is pursuing opportunities to refinance the maturing mortgage debt. However, in light of the current state of credit markets generally and the real estate credit markets specifically, the company cannot currently predict the outcome of these efforts.

Contact:
Debi Ethridge, Vice President, Finance & Investor Relations, (404) 365-2719, dethridge@lodgian.com
Jerry or Chris at  DalyGray, jerry@dalygray.com