"The current turmoil in the United States economy is having aprofound impact on the industry in general, as both corporate andleisure travelers tighten their belts and reduce operatingbudgets," Peter Cyrus, Lodgian interim president and CEO, stated ina release. He added that its hotels fared better than competitorsin their respective markets.


Lodgian is a major independent owner-operator of full-servicehotels, with a portfolio of 42 properties totaling 7,800 rooms in23 states and Canada. The company sold a former Holiday Inn inMarietta, GA for $3.3 million during the third quarter and haseight other properties on the market.


As of Sept. 30, Lodgian had 36 hotels encumbered as collateralfor mortgage debt totaling $341 million. It is working with amortgage banker to look for ways to retain flexibility, maximizeproceeds and keep its debt cost as low as possible, said JamesMacLennan, Lodgian executive VP and CFO.


Meanwhile, the company bought 382,000 shares of its own commonstock for approximately $3 million, or $7.74 per share, during thethird quarter as part of a $10-million buyback plan ending in April2009. Lodgian has acquired at least 15% of its common stock for atotal cost of $39.1 million since the repurchase program began inMay 2006.

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