Lodgian's Financials Improve as 2004 Hurricane Repairs Continue

ATLANTA-Still working on 2004 hurricane repairs at several of its 89 hotel properties, locally based Lodgian Inc. has posted second-quarter adjusted earnings before interest, taxes, depreciation and amortization of $19.1 million, down 4.9% from $20.1 million the same period last year. EBITDA from continuing operations was $17.3 million, down 16.3% from $20.7 million a year ago.

However, room and total revenue and income from continuing operations were all up. Room revenue was $64.5 million, up 3.2% from $62.5 million a year ago. Total revenue from continuing operations was $86 million, up 1.8% from $84.4 million. Net income attributable to common stock was $1.9 million compared to a loss of $7.2 million in second quarter 2004. Income from discontinued operations showed a loss of $1.8 million versus positive income of $4.2 million last year at this time.

Still, Lodgian CEO W. Thomas Parrington says the company plans to invest about $47 million in the second half on its continuing operations hotels. That amount includes $24 million for repair of hurricane-damaged hotels. Much of the repair figure will be covered by insurance proceeds, Parrington says.

"We will continue to have significant displacement in the third quarter, which will diminish slowly over the remainder of the year," the Lodgian chief says in a prepared statement. "Our goal is to complete substantially all deferred maintenance by year end and return to amore typical ongoing refurbishment program in 2006."

Parrington expects the total renovations to take about three to six months to complete. "Our hotels that were refurbished in 2003 and 2004 have outperformed both our full portfolio and the industry as a whole, as measured by revenue per available room growth," he adds. "We believe the properties continue to have significant upside potential."