ATLANTA-Lodgian, Inc.'s board of directors has given the go-ahead to repurchase up to $15 million of the company's common stock over a period ending no later than May 26, 2007. The move comes as the locally based hotel owner and operator is wrapping up a capital improvement and renovation program at its properties.
"Our management and board of directors considered our recently completed, and nearly completed, capital improvements and renovations, and their expected effect on revenues and profits; analyzed anticipated operating and non-operating cash flows; and evaluated various alternative uses for some of our hotel assets and the impact of alternative uses on the values of those properties," CEO Ed Rohling explains in a statement. "After discussion, we decided the investing on our own stock, under appropriate circumstances, would be a desirable use of some of our cash."
A company statement explains that "any purchases under the stock repurchase program may be made, from time to time, in the open market, through block trades or otherwise. Depending on share price, market conditions, Lodgian's cash position and need, and other factors, these purchases may be commenced or suspended at any time or from time to time without prior notice." As of March 31, Lodgian had nearly 24.76 million shares of common stock outstanding.
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