"This transaction is a major part of the execution of our plan to streamline the portfolio," says Lodgian CEO Ed Rohling, in a prepared statement. The disposition plan was announced in November 2006.

In Alabama, the just-sold hotels are the 202-room Holiday Inn in Sheffield and 112-room Holiday Inn Express in Dothan, where it also bought a 102-room Quality Inn. The Florida properties are the 152-room Holiday Inn in Pensacola, 122-room Holiday Inn Express in Pensacola and 228-room Holiday Inn in Winter Haven. In Pennsylvania, the Atlanta-based Kronos bought a 189-room Holiday Inn in Lancaster, 201-room Holiday Inn Greentree in Pittsburgh and 100-room Holiday Inn in York. In Georgia, the buyer got the 297-room Ramada Plaza in Macon, 126-room Park Inn in Brunswick and 117-room Augusta West Inn in Augusta. The portfolio included the 244-room Holiday Inn in Lansing, MI; 275-room Crowne Plaza in Cedar Rapids, IA; 393-room Clarion Hotel in Louisville, KY; and 197-room Ramada in Charleston, SC.

Atlanta-based Hunter Realty Associates Inc. represented Lodgian in the transaction. The proceeds of the sale will be used for general corporate purposes. The sale brings Lodgian's total cash in restricted and unrestricted funds to more than $110 million, according to CFO James MacLennan.

Since the disposition was announced, Lodgian has sold two hotels in fourth quarter 2006 and two in first quarter 2007 for an aggregate price of $16.6 million. Of the remaining seven hotels, four are under contract and three properties are being actively marketed. Lodgian officials did not say when the four sales may be completed.

When disposition was announced, Lodgian's executives said they expected to generate $115 million to $122 million in proceeds based on in-hand sales contracts, letters of intent and broker opinions of value or management estimates. "Generally speaking we are getting the prices we had hoped for the properties and our repositioning plan is going as expected," Debi Ethridge, Lodgian vice president of finance and investor relations, tells GlobeSt.com.