Lodgian (LOD) 8-K Lodgian Reports 2008 Second Quarter Results

For Immediate Release
Contact:
Debi Neary Ethridge
Vice President, Finance & Investor Relations
dethridge@lodgian.com
(404) 365-2719

Lodgian Reports 2008 Second Quarter Results

Adjusted EBITDA for Continuing Operations Rose 17.9 Percent,
Corporate Overhead Reduced $2.2 million in Quarter

          ATLANTA, Ga., August 5, 2008—Lodgian, Inc. (AMEX: LGN), one of the nation’s largest independent owners and operators of full-service hotels, today reported results for the 2008 second quarter ended June 30, 2008.

          The company will host a 10 a.m. E.T. conference call today to discuss results.

          The “35 continuing operations hotels” comprise those Lodgian properties that are not held for sale as of June 30, 2008. A list of properties included in both continuing operations and held for sale is attached to this release.

Second Quarter 2008 Highlights for 35 Continuing Operations hotels

• Achieved a 0.3 percent improvement in revenue per available room (RevPAR) in the second quarter of 2008 compared to 2007 second quarter, despite the displacement caused by five renovations ongoing in the quarter.

• Increased total revenue 0.3 percent, from $66.7 million in the 2007 second quarter to $66.9 million in the second quarter of 2008.

• Increased Adjusted EBITDA (defined below) from $15.6 million to $18.4 million, a 17.9 percent improvement.

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• Improved Adjusted EBITDA margin from 23.4 percent in 2007 second quarter to 27.5 percent in 2008 second quarter.

• Completed renovation work at the Marriott Denver International Airport and continued renovation projects at four other hotels.

Statistics for 35 Continuing Operations Hotels

	2Q		2Q
	2008*		2007*		% Change
Rooms revenue	$	49,364	$	49,224		0.3	%
RevPAR	$	81.48	$	81.27		0.3	%
Total revenue	$	66,906	$	66,678		0.3	%
Income/(loss)	$	284	$	142		100.0	%
EBITDA	$	12,796	$	12,105		5.7	%
Adjusted EBITDA (defined below)	$	18,376	$	15,590		17.9	%

Consolidated Financial Results

Income/(loss) from continuing operations	$	284	$	142		100.0	%
Income/(loss) from discontinued operations	$	6,083	$	(405	)	n/m
Net income/(loss) attributable to common stock	$	6,367	$	(263	)	n/m
Net income/(loss) per share attributable to common stock	$	0.29	$	(0.01	)	n/m

* Dollars in thousands except for RevPAR and per share data

In this press release, Lodgian uses the term “Adjusted EBITDA” to mean earnings before interest, taxes, depreciation and amortization (“EBITDA”), but excluding the effects of the following charges: impairment losses; casualty (gains)/losses, net, for properties damaged by hurricane, fire or flood; gain/loss on extinguishment of debt; and proceeds arising from business interruption insurance claims.

Corporate Highlights:

• Completed approved stock repurchase plan during April 2008 ($30 million in 2007/2008); outstanding shares reduced by 10 percent as a result.

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• Approved and initiated a further stock repurchase of up to $10 million before April 15, 2009; approximately 172,000 shares re-purchased under this authority as of June 30, 2008.

• Sold two hotels for gross proceeds of $8.1 million, with net proceeds of $7.7 million used for general corporate purposes.

• Received $6.1 million in final settlement from insurer, bringing the total received to $10.1 million, for damages sustained by Marietta Holiday Inn in January 2006, of which $5.5 million was used to release the hotel from mortgage debt; hotel subsequently re-classified as held for sale during the 2008 second quarter.

Second Quarter 2008 Results

          Second quarter 2008 total revenue for 35 continuing operations hotels improved 0.3 percent to $66.9 million, compared to the same period in 2007. During the quarter, the displacement of total revenue resulting from renovations at five properties was $0.6 million. Income from continuing operations was $0.3 million, compared to $0.1 million in the 2007 second quarter.

          Net income attributable to common shares was $6.4 million, or $0.29 per diluted share, compared to a net loss of $(0.3) million, or $(0.01) per diluted share in the 2007 second quarter.

          EBITDA from 35 continuing operations hotels improved $0.7 million, or 5.7 percent, to $12.8 million compared to the prior year. Adjusted EBITDA for the same group of properties increased 17.9 percent, from $15.6 million in the second quarter of 2007 to $18.4 million in the 2008 second quarter, primarily due to a $2.2 million decrease in corporate overhead.

Management Comments

          “Considering the current state of the industry and the economy in general, our continuing operations hotels had a positive second quarter, with RevPAR up 0.3 percent compared to the

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second quarter of last year,” said Peter Cyrus, Lodgian interim president and chief executive officer. “For the quarter, RevPAR for the 28 continuing operations hotels not under renovation in either the 2007 or 2008 second quarter increased 1.3 percent, compared to the second quarter 2008 industry average of 1.2 percent, according to Smith Travel Research. Our hotels not under renovation also increased their RevPAR index over the competitive hotels by 1.0 percent in the quarter. A reduction of $2.2 million in overhead costs, largely driven by our corporate restructure completed in August 2007, had a significant impact on results for the quarter.”

          Adjusted EBITDA margins for the 35 continuing operations hotels improved 410 basis points to 27.5 percent during the second quarter of 2008 compared to 2007, primarily driven by the decrease in corporate overhead.

Asset Disposition Program

          During the first quarter of this year, the company announced and commenced a program to further reposition its portfolio. A total of nine properties were identified for sale, with two hotels remaining as held for sale from those properties announced in the 2006 fourth quarter. During the 2008 second quarter, the former Holiday Inn Marietta, Ga. was reclassified as held for sale. Additionally, the Crowne Plaza Worcester, Mass. was reclassified from held for sale to continuing operations during the 2008 second quarter. An impairment charge of $4.8 million was recordrd, which is included in continuing operations.

          Two hotels were sold during the quarter, the 158-room Holiday Inn Frederick, Md. and the 156-room former Holiday Inn St. Paul/Arden Hills, Minn. Aggregate gross proceeds were

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$8.1 million, with net proceeds of $7.7 million used for general corporate purposes, including capital expenditures and share repurchases.

          As of June 30, 2008, a total of nine properties were classified as held for sale. The company previously disclosed its expectations of receiving aggregate gross proceeds of approximately $94 million to $102 million, inclusive of the $8.1 million received for the two hotels sold during the 2008 second quarter and prior to the two reclassifications that also occurred during the quarter. Given current market conditions, it is difficult for the company to provide updated estimates of gross proceeds from these asset sales at this time. The company will continue to report asset dispositions as they occur.

Balance Sheet Update

          As of June 30, 2008, 37 hotels were encumbered as collateral for various mortgage debt facilities totaling approximately $352 million. A summary of mortgage debt facilities is included in the supplemental information attached to this release. There are no debt maturities requiring refinancing until July 2009.

          “We are beginning to examine the most appropriate and efficient strategies for execution of next summer’s refinancing,” said James MacLennan, executive vice president and chief financial officer. “Our objective continues to be to provide maximum flexibility to the company going forward, as well as to keep our weighted average cost of debt as low as possible. At the end of the second quarter 2008, the company had $45.1 million in cash and restricted cash on its balance sheet, and a further $11.4 million in deposits held by lenders for capital expenditures, providing flexibility as we move forward.”

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          During the second quarter of 2008, Lodgian acquired approximately 172,000 shares of common stock at an average price of $8.51 per share, for a total of approximately $1.5 million, as part of its previously announced plan to repurchase up to $10 million of its common shares over a period ending no later than April 15, 2009. The company has acquired a total of 3,375,877 shares, or approximately 13.7 percent of common stock outstanding prior to initiating the repurchase program in May 2006, for a total cost of approximately $36.2 million as of June 30, 2008.

Conference Call

          Lodgian will hold a conference call to discuss its 2008 second quarter results today, August 5, at 10 a.m. Eastern time. To hear the webcast, interested parties may visit the company’s Web site at www.lodgian.com and click on Investor Relations and then Webcast, Q2 Earnings Conference Call. A recording of the call will be available by telephone until midnight on Tuesday, August 12 by dialing (800) 405-2236, reference number 11117139. A replay of the conference call will be posted on Lodgian’s Web site.

Non-GAAP Financial Measures

          The historical non-GAAP financial measures included in this press release are reconciled to the comparable GAAP measures in the schedules attached to this press release.

EBITDA and Adjusted EBITDA

          EBITDA and Adjusted EBITDA are non-GAAP measures and should not be used as a substitute for measures such as net income (loss), cash flows from operating activities, or other measures computed in accordance with GAAP. The company uses EBITDA and Adjusted

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EBITDA to measure its performance and to assist in the assessment of hotel property values. EBITDA is also a widely used industry measure which Lodgian believes provides pertinent information to investors and is an additional indicator of the company’s operating performance.

          The company defines Adjusted EBITDA as EBITDA excluding the effects of certain charges such as impairment losses, gain/loss on extinguishment of debt, and casualty losses or gains related to damage to and insurance recoveries for properties damaged by hurricane, fire or flood.

About Lodgian

          Lodgian is one of the largest independent owners and operators of full-service hotels in the United States. The company currently owns and manages a portfolio of 44 hotels with 8,118 rooms located in 23 states and Canada. Of the company’s 44-hotel portfolio, 23 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 12 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), three are Hilton brands, and four are affiliated with nationally recognized franchisors including Starwood, Wyndham, and Carlson. Two hotels are independent, unbranded properties, both of which are currently closed and held for sale. For more information about Lodgian, visit the company’s Web site:www.lodgian.com.

Forward-Looking Statements

          This press release includes forward-looking statements related to Lodgian’s operations that are based on management’s current expectations, estimates and projections. These statements are not guarantees of future performance and actual results could differ materially.

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The words “guidance,” “may,” “should,” “expect,” “believe,” “anticipate,” “project,” “estimate,” “plan,” and similar expressions are intended to identify forward-looking statements. Certain factors are not within the company’s control and readers are cautioned not to put undue reliance on forward-looking statements. These statements involve risks and uncertainties including, but not limited to, the company’s ability to generate sufficient working capital from operations and other risks detailed from time to time in the company’s SEC reports, including the company’s annual report on Form 10-K for the year ended December 31, 2007. The company undertakes no obligations to update events to reflect changed assumptions, the occurrence of unanticipated events or changes to future results over time.

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LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2008			December 31, 2007
	(Unaudited in thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents	$	36,367		$	54,389
Cash, restricted		8,716			8,363
Accounts receivable (net of allowances: 2008 — $289; 2007 — $323)		10,690			8,794
Insurance receivable		—			2,254
Inventories		3,010			3,097
Prepaid expenses and other current assets		17,004			18,186
Assets held for sale		55,597			8,009
Total current assets		131,384			103,092
Property and equipment, net		448,148			499,986
Deposits for capital expenditures		11,444			16,565
Other assets		3,957			5,087
	$	594,933		$	624,730
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,307		$	9,692
Other accrued liabilities		25,880			28,336
Advance deposits		2,069			1,683
Insurance advances		—			2,650
Current portion of long-term liabilities		4,400			5,092
Liabilities related to assets held for sale		29,765			961
Total current liabilities		70,421			48,414
Long-term liabilities		321,428			355,728
Total liabilities		391,849			404,142
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $.01 par value, 60,000,000 shares authorized; 25,071,836 and 25,008,621 issued at June 30, 2008 and December 31, 2007, respectively		251			250
Additional paid-in capital		330,265			329,694
Accumulated deficit		(94,413	)		(93,262	)
Accumulated other comprehensive income		3,640			4,115
Treasury stock, at cost, 3,420,475 and 1,709,878 shares at June 30, 2008 and December 31, 2007, respectively		(36,659	)		(20,209	)
Total stockholders’ equity		203,084			220,588
	$	594,933		$	624,730

LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
	(Unaudited in thousands, except per share data)
Revenues:
Rooms	$	49,364		$	49,224		$	93,212		$	92,045
Food and beverage		15,404			15,323			27,466			27,803
Other		2,138			2,131			4,200			3,799
Total revenues		66,906			66,678			124,878			123,647
Direct operating expenses:
Rooms		12,179			11,725			23,362			22,339
Food and beverage		9,851			9,918			18,670			18,753
Other		1,537			1,462			2,925			2,704
Total direct operating expenses		23,567			23,105			44,957			43,796
		43,339			43,573			79,921			79,851
Other operating expenses:
Other hotel operating costs		17,719			17,603			35,598			34,492
Property and other taxes, insurance, and leases		3,760			4,418			8,112			9,242
Corporate and other		3,484			5,906			9,369			11,569
Casualty gains, net		—			—			—			(1,867	)
Depreciation and amortization		7,989			7,098			15,458			14,075
Impairment of long-lived assets		5,580			155			7,721			314
Total other operating expenses		38,532			35,180			76,258			67,825
Operating income		4,807			8,393			3,663			12,026
Other income (expenses):
Interest income and other		276			807			666			1,719
Interest expense		(4,775	)		(6,044	)		(9,947	)		(11,422	)
Loss on debt extinguishment		—			(3,330	)		—			(3,330	)
Income (loss) before income taxes and minority interests		308			(174	)		(5,618	)		(1,007	)
Minority interests (net of taxes, nil)		—			(56	)		—			(421	)
(Provision) benefit for income taxes — continuing operations		(24	)		372			(87	)		1,079
Income (loss) from continuing operations		284			142			(5,705	)		(349	)
Discontinued operations:
Income (loss) from discontinued operations before income taxes		5,986			(248	)		4,629			1,961
Benefit (provision) for income taxes — discontinued operations		97			(157	)		(75	)		(2,032	)
Income (loss) from discontinued operations		6,083			(405	)		4,554			(71	)
Net income (loss) attributable to common stock	$	6,367		$	(263	)	$	(1,151	)	$	(420	)
Basic net income (loss) per share attributable to common stock	$	0.29		$	(0.01	)	$	(0.05	)	$	(0.02	)
Diluted net income (loss) per share attributable to common stock	$	0.29		$	(0.01	)	$	(0.05	)	$	(0.02	)
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LODGIAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS BY QUARTER
(UNAUDITED)

	2008						2007												2006
	Second			First			Fourth			Third			Second			First			Fourth			Third
	Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter
	(Unaudited in thousands)
Revenues:
Rooms	$	49,364		$	43,848		$	40,730		$	46,942		$	49,224		$	42,821		$	39,510		$	43,757
Food and beverage		15,404			12,062			14,429			12,857			15,323			12,480			13,670			11,530
Other		2,138			2,062			1,819			2,134			2,131			1,668			1,775			1,836
		66,906			57,972			56,978			61,933			66,678			56,969			54,955			57,123
Direct operating expenses:
Rooms		12,179			11,183			10,497			11,997			11,725			10,614			10,481			11,304
Food and beverage		9,851			8,819			9,054			9,432			9,918			8,835			9,161			8,607
Other		1,537			1,388			1,288			1,512			1,462			1,242			1,275			1,369
		23,567			21,390			20,839			22,941			23,105			20,691			20,917			21,280
		43,339			36,582			36,139			38,992			43,573			36,278			34,038			35,843
Other operating expenses:
Other hotel operating costs		17,719			17,879			16,285			17,847			17,603			16,889			15,433			16,227
Property and other taxes, insurance and leases		3,760			4,352			4,334			4,087			4,418			4,824			4,578			5,008
Corporate and other		3,484			5,885			4,248			5,575			5,906			5,663			4,936			5,586
Casualty (gain) losses, net		—			—			—			—			—			(1,867	)		—			(3,085	)
Restructuring		—			—			(25	)		1,258			—			—			—			—
Depreciation and amortization		7,989			7,469			7,464			7,226			7,098			6,977			6,972			7,070
Impairment of long-lived assets		5,580			2,141			796			512			155			159			147			281
Other operating expenses		38,532			37,726			33,102			36,505			35,180			32,645			32,066			31,087
Operating income (loss)		4,807			(1,144	)		3,037			2,487			8,393			3,633			1,972			4,756
Other income (expenses):
Business interruption insurance proceeds		—			—			—			—			—			—			(47	)		2,447
Interest income and other		276			390			912			1,312			807			912			651			770
Other interest expense		(4,775	)		(5,172	)		(5,790	)		(5,958	)		(6,044	)		(5,378	)		(5,452	)		(5,632	)
Loss on debt extinguishment		—			—			—			—			(3,330	)		—			—			—
Income (loss) before income taxes and minority interests		308			(5,926	)		(1,841	)		(2,159	)		(174	)		(833	)		(2,876	)		2,341
Minority interests (net of taxes, nil)		—			—			—			—			(56	)		(365	)		335			100
Income (loss) before income taxes — continuing operations		308			(5,926	)		(1,841	)		(2,159	)		(230	)		(1,198	)		(2,541	)		2,441
(Provision) benefit for income taxes — continuing operations		(24	)		(63	)		(2,262	)		1,027			372			707			(9,154	)		(1,314	)
Income (loss) from continuing operations		284			(5,989	)		(4,103	)		(1,132	)		142			(491	)		(11,695	)		1,127
Discontinued operations:
Income (loss) from discontinued operations before income taxes		5,986			(1,357	)		(5,824	)		1,818			(248	)		2,209			(13,527	)		(2,034	)
Benefit (provision) for income taxes		97			(172	)		1,854			(639	)		(157	)		(1,875	)		4,509			1,069
Income (loss) from discontinued operations		6,083			(1,529	)		(3,970	)		1,179			(405	)		334			(9,018	)		(965	)
Net income (loss) attributable to common stock	$	6,367		$	(7,518	)	$	(8,073	)	$	47		$	(263	)	$	(157	)	$	(20,713	)	$	162

LODGIAN, INC. AND SUBSIDIARIES
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures)
with Income/(Loss) from Continuing Operations (a GAAP measure)
(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
	($ in thousands)						($ in thousands)
Continuing operations:
Income (loss) from continuing operations	$	284		$	142		$	(5,705	)	$	(349	)
Depreciation and amortization		7,989			7,098			15,458			14,075
Interest income		(276	)		(807	)		(666	)		(1,719	)
Interest expense		4,775			6,044			9,947			11,422
Provision (benefit) for income taxes		24			(372	)		87			(1,079	)
EBITDA from continuing operations	$	12,796		$	12,105		$	19,121		$	22,350
Adjustments to EBITDA:
Impairment of long-lived assets	$	5,580		$	155		$	7,721		$	314
Casualty (gains) losses, net	$	—		$	—		$	—		$	(1,867	)
(Gain) loss on debt extinguishment		—			3,330			—			3,330
Adjusted EBITDA from continuing operations	$	18,376		$	15,590		$	26,842		$	24,127

Lodgian, Inc.
Summary of Mortgage Debt as of June 30, 2008
(in $ thousands)

	Number		Debt		Maturity
	of Hotels		Balance		Date		Interest rate
Mortgage Debt
IXIS		3	$	21,127	Mar-09	[1]	LIBOR plus 2.95%, capped at 8.45%
IXIS		1		18,647	Dec-08	[1]	LIBOR plus 2.90%, capped at 8.40%
Goldman Sachs		10		130,000	May-09	[2]	LIBOR plus 1.50%; capped at 8.50%
Merrill Lynch Mortgage Lending, Inc. — Fixed #1		4		40,016	Jul-09			6.58	%
Merrill Lynch Mortgage Lending, Inc. — Fixed #3		8		61,106	Jul-09			6.58	%
Merrill Lynch Mortgage Lending, Inc. — Fixed #4		7		45,795	Jul-09			6.58	%
Wachovia- Pinehurst		1		3,021	Jun-10			5.78	%
Wachovia- Phoenix West		1		9,574	Jan-11			6.03	%
Wachovia- Palm Desert		1		5,824	Feb-11			6.04	%
Wachovia- Worcester		1		16,666	Feb-11			6.04	%
Total Mortgage Debt		37	$	351,776				5.43	%[3]

[1]-	Two one-year extension options are available beyond the maturity date
[2]-	Three one-year extension options are available beyond the maturity date
[3]-	Annual effective weighted average cost of debt at June 30, 2008.

Lodgian, Inc.
2008 Supplemental Operating Information

Hotel	Room		Three Months Ended June 30,
Count	Count		2008			2007			Increase (Decrease)
35	6,658	All Continuing Operations
		Occupancy		75.4	%		73.7	%				2.3	%
		ADR	$	108.00		$	110.29		$	(2.29	)	(2.1	)%
		RevPAR	$	81.48		$	81.27		$	0.21		0.3	%
		RevPAR Index		100.0	%		100.0	%				0.0	%
28	5,267	Continuing Operations less hotels under renovation in the secondquarter 2007 and 2008
		Occupancy		76.4	%		74.1	%				3.1	%
		ADR	$	105.97		$	107.79		$	(1.82	)	(1.7	)%
		RevPAR	$	80.94		$	79.89		$	1.05		1.3	%
		RevPAR Index		99.0	%		98.0	%				1.0	%
12	1,397	Marriott Hotels
		Occupancy		77.8	%		76.0	%				2.4	%
		ADR	$	112.51		$	114.51		$	(2.00	)	(1.7	)%
		RevPAR	$	87.54		$	87.02		$	0.52		0.6	%
		RevPAR Index		111.5	%		113.6	%				(1.8	)%
2	396	Hilton Hotels
		Occupancy		72.7	%		72.3	%				0.6	%
		ADR	$	114.69		$	114.07		$	0.62		0.5	%
		RevPAR	$	83.42		$	82.43		$	0.99		1.2	%
		RevPAR Index		99.7	%		98.8	%				0.9	%
17	3,990	IHG Hotels
		Occupancy		75.9	%		74.4	%				2.0	%
		ADR	$	108.05		$	111.03		$	(2.98	)	(2.7	)%
		RevPAR	$	82.04		$	82.63		$	(0.59	)	(0.7	)%
		RevPAR Index		99.2	%		98.8	%				0.4	%
4	875	Other Brands
		Occupancy		70.7	%		67.3	%				5.1	%
		ADR	$	96.74		$	97.11		$	(0.37	)	(0.4	)%
		RevPAR	$	68.36		$	65.37		$	2.99		4.6	%
		RevPAR Index		84.6	%		82.7	%				2.3	%

Lodgian, Inc.
2008 Supplemental Operating Information

Hotel	Room		Six Months Ended June 30,
Count	Count		2008			2007			Increase (Decrease)
35	6,658	All Continuing Operations
		Occupancy		70.9	%		69.4	%				2.1	%
		ADR	$	108.55		$	110.10		$	(1.55	)	(1.4	)%
		RevPAR	$	76.92		$	76.40		$	0.52		0.7	%
		RevPAR Index		98.9	%		97.9	%				1.0	%
26	4,711	Continuing Operations less hotels under renovation in the first and second quarters 2007 and 2008
		Occupancy		72.5	%		70.2	%				3.2	%
		ADR	$	105.48		$	106.35		$	(0.87	)	0.8	%
		RevPAR	$	76.44		$	74.65		$	1.79		2.4	%
		RevPAR Index		99.2	%		96.9	%				2.4	%
12	1,397	Marriott Hotels
		Occupancy		72.0	%		71.0	%				1.4	%
		ADR	$	113.45		$	114.58		$	(1.13	)	(1.0	)%
		RevPAR	$	81.67		$	81.34		$	0.33		0.4	%
		RevPAR Index		110.8	%		113.5	%				(2.4	)%
2	396	Hilton Hotels
		Occupancy		65.8	%		64.4	%				2.2	%
		ADR	$	112.59		$	112.97		$	(0.38	)	(0.3	)%
		RevPAR	$	74.12		$	72.80		$	1.32		1.8	%
		RevPAR Index		97.5	%		94.7	%				3.0	%
17	3,990	IHG Hotels
		Occupancy		71.4	%		70.3	%				1.6	%
		ADR	$	108.35		$	109.73		$	(1.38	)	(1.3	)%
		RevPAR	$	77.36		$	77.12		$	0.24		0.3	%
		RevPAR Index		98.8	%		96.8	%				2.1	%
4	875	Other Brands
		Occupancy		68.9	%		65.0	%				6.0	%
		ADR	$	99.56		$	102.82		$	(3.26	)	(3.2	)%
		RevPAR	$	68.60		$	66.83		$	1.77		2.6	%
		RevPAR Index		81.5	%		80.4	%				1.4	%

Lodgian, Inc.
Continuing Operations Hotel Portfolio as of June 30, 2008

Location	Brand	Rooms
Bentonville, AR	Courtyard by Marriott		90
Little Rock, AR	Residence Inn by Marriott		96
Phoenix, AZ	Crowne Plaza		299
Phoenix, AZ	Radisson		159
Palm Desert, CA	Holiday Inn Express		129
Denver, CO	Marriott		238
Melbourne, FL	Crowne Plaza		270
West Palm Beach, FL	Crowne Plaza		219
Atlanta, GA	Courtyard by Marriott		181
Ft. Wayne, IN	Hilton		244
Florence, KY	Courtyard by Marriott		78
Paducah, KY	Courtyard by Marriott		100
Kenner, LA	Radisson		244
Lafayette, LA	Courtyard by Marriott		90
Dedham, MA	Residence Inn by Marriott		81
Worcester, MA	Crowne Plaza		243
Baltimore (BWI Airport), MD	Holiday Inn		260
Baltimore (Inner Harbor), MD	Holiday Inn		375
Columbia, MD	Hilton		152
Silver Spring, MD	Crowne Plaza		231
Pinehurst, NC	Springhill Suites by Marriott	107
Merrimack, NH	Fairfield Inn by Marriott		115
Santa Fe, NM	Holiday Inn		130
Albany, NY	Crowne Plaza		384
Strongsville, OH	Holiday Inn Select		303
Tulsa, OK	Courtyard by Marriott		122
Monroeville, PA	Holiday Inn		187
Philadelphia, PA	Four Points by Sheraton		190
Pittsburgh — Washington, PA	Holiday Inn		138
Pittsburgh, PA	Crowne Plaza		193
Hilton Head, SC	Holiday Inn		202
Myrtle Beach, SC	Holiday Inn		133
Abilene, TX	Courtyard by Marriott		99
Dallas (DFW Airport), TX	Wyndham		282
Houston, TX	Crowne Plaza		294
			6,658

Lodgian, Inc.
Assets Held for Sale

Location	Brand	Rooms
Phoenix, AZ	Holiday Inn		144
Frisco, CO	Holiday Inn		217
East Hartford, CT	Holiday Inn		130
Marietta, GA	Independent		193
Glen Burnie, MD	Holiday Inn		127
Towson, MD	Holiday Inn		139
Troy, MI	Hilton		191
Memphis, TN	Independent		105
Windsor, Ontario, Canada	Holiday Inn Select		214