[SERVICO LETTERHEAD]

                                  NEWS RELEASE

FOR IMMEDIATE RELEASE                       CONTACT: Servico, Inc.
                                                     Warren M. Knight
November 9, 1998                                     Vice President - Finance
                                                     (561) 689-9970


                    SERVICO ANNOUNCES EUROPEAN JOINT VENTURE,
             FINANCING COMMITMENT FOR MERGER WITH IMPAC HOTEL GROUP
                       AND RESIGNATION OF DAVID BUDDEMEYER

     WEST PALM BEACH, FLORIDA: Servico, Inc. (NYSE: SER), a nationwide owner and
operator of hotels,  announced  the  completion  of a joint  venture with Lehman
Brothers  for the  purchase  of several  European  hotel  properties.  The joint
venture  acquired six hotel  subsidiaries  of City Hotels located in Belgium and
the Netherlands  containing  1,200 rooms. As part of the joint venture,  Servico
will manage the day-to-day  operations of the European  hotels and oversee their
renovation.  This off-balance sheet transaction  represents  Servico's  entrance
into the European market.

     Servico also  announced  that it has obtained a financing  commitment  from
Lehman  Brothers  Holdings,  Inc. in connection  with the  previously  announced
merger  with Impac  Hotel  Group.  The  financing  commitment  is subject to the
satisfaction of customary  conditions and the merger is expected to close before
the end of the year. The terms of the merger call for Servico and Impac to merge
and form a new  company  to be named  Lodgian.  Lodgian  will own or manage  143
hotels with more than 27,000  rooms in 35 states,  Canada and Europe,  making it
one of the largest independent, multi-brand owners and operators of hotels.

     The financing commitment from Lehman Brothers in the amount of $265 million
will be used to complete the Impac merger and  includes  fund  necessary to make
payment of  



approximately  $31.5 million due as a result of two separate  swap  transactions
that were entered into by Servico in an effort to manage the interest  rate risk
associated with its financing of the Impac merger.

     David  Buddemeyer,  Chairman  of the Board and Chief  Executive  Officer of
Servico,  will resign from all his positions with Servico upon the  consummation
of the merger.

     Once the merger is  completed,  Robert S. Cole,  currently the President of
Impac,  will  become  Chief  Executive  Officer of  Lodgian.  Lodgian  will also
establish an Office of the Chairman  composed of  directors  Joseph C.  Calabro,
John Lang and  Michael  A.  Leven,  with  Joseph C.  Calabro  serving  as acting
chairman of the Office of the Chairman.

     Servico  currently  owns or manages 90 hotels with more than  18,300  rooms
located in 24 states,  Canada and Europe. The hotels are primarily full service,
providing food and beverage  service as well as lodging and meeting  facilities.
Substantially all of Servico's hotels are affiliated with nationally  recognized
hospitality  franchises,  including  Holiday Inn,  Crowne Plaza,  Hilton,  Omni,
Radisson, Sheraton and Westin. With assets in excess of $750 million, Servico is
one of the largest hotel owner/operators in the United States.

     Statements  in this release may be construed to be forward  looking and are
made pursuant to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Investors are cautioned that all forward looking statements
involve risks and uncertainties, including without limitation, risks relating to
the operation and acquisition of hotels,  risks that the Impac  acquisition will
not be completed,  risks relating to the availability of capital and the ability
to refinance debt,  risks relating to the historical  cyclicality of the lodging
industry and other risks identified in Servico's SEC filings.