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ATLANTA-After taking a flyer on a startup online hotel reservations company started by a former executive, locally based Suburban Lodges of America Inc. will report to shareholders Thursday that it lost $7.4 million on loans to HotelTools Inc. of Atlanta.

David Krischer, Suburban Lodges’ CEO, is shouldering the blame.

“I regret that the capital environment for technology companies has been so poor these past 12 months,” Krischer says in a prepared statement. “That has resulted in HotelTools being reliant solely on continued loans from Suburban Lodges, which in turn, we believe, contributed to doubts by HotelTools’ potential customers as to its ability to deliver services over the long run.”

Seth Christian formed HotelTools a year ago. Radiant Systems Inc. of South Plainfield, NJ has purchased certain assets of HotelTools and repaid Suburban Lodges $168,000 on the secured loans.

Radiant signed a two-year contract with Suburban to provide software services to the company and its franchisees. The New Jersey company also agreed to pay off the $1 million balance HotelTool owes on an equipment-financing lease with Suburban.

“We are pleased that the transaction between HotelTools and Radiant Systems provides a solution to this issue, eliminates the need for Suburban to make additional loans to HotelTools and maintains the software for the use of our company-owned hotels and our franchisees,” Krischer says in his statement.

A Thomson/First Call analysts’ poll indicated Suburban will report second-quarter net income of 15 cents a share and 46 cents a share for the year.

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