"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.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.