EXHIBIT 12
LODGIAN, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
Successor Predecessor
--------- --------------------------------------------------------
Nov 23 to Jan 1 to
Dec 31, Nov 22,
2002 2002 2001 2000 1999 1998
---- ---- ---- ---- ---- ----
EARNINGS AVAILABLE FOR FIXED CHARGES:
Income before income taxes and extraordinary items $ (9,294) $ 11,006 $(139,935) $(116,678) $ (73,037) $ (5,242)
Plus total fixed charges before preferred stock dividends 3,445 32,369 120,329 120,143 116,946 46,724
Less capitalized interest (149) (365) (861) (747) (8,428) (2,661)
TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES (5,998) 43,009 (20,467) 2,718 35,481 38,821
FIXED CHARGES:
Interest expense 2,844 29,798 76,187 98,053 85,837 33,039
Capitalized interest 149 365 861 747 8,428 2,661
Amortization of debt issuance costs 167 56 27,740 5,654 7,243 2,516
Interest portion of rent expense 285 2,149 2,671 3,276 2,213 2,033
Preferred stock dividends of subsidiary -- -- 12,869 12,412 13,224 6,475
Total fixed charges before preferred stock dividends 3,445 32,369 120,329 120,143 116,946 46,724
Preferred stock dividends 1,510 -- -- -- -- --
TOTAL FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 4,955 32,369 120,329 120,143 116,946 46,724
RATIO OF EARNINGS TO FIXED CHARGES [1] -- 1.3 -- -- -- --
DEFICIENCY IN EARNINGS REQUIRED TO COVER FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS $ 10,953 -- $ 140,796 $ 117,425 $ 81,465 $ 7,903
[1]- The ratio of earnings to fixed charges has been computed by dividing
earnings before income taxes and preferred stock dividends plus fixed
charges before preferred stock dividends by the fixed charges. This ratio
includes the earnings and fixed charges of the Company and its
consolidated subsidiaries; fixed charges consist of interest and related
charges on debt, preferred stock dividends and the portion of rentals for
real and personal properties in an amount considered to be representative
of the interest factor.