Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ATLANTA-Lodgian Inc., a reorganized Chapter 11, locally based manager of 97 hotels with 18,265 rooms, reports a third-quarter loss of $3.1 million from continuing operations before income taxes, reorganization items and minority interest.

Revenue was $82.6 million, a 2.2% decline from the predecessor company’s third quarter 2002. The company showed a $600,000 net loss from discontinued operations compared to a $1.6 million loss for the predecessor company in the same period a year ago.

Lodgian also reported a net loss attributable to common stock of $3.6 million, or a loss of 52 cents per share. The predecessor company showed a net loss of $4.6 million, or a 16 cents per share loss.

Earnings before interest, taxes, depreciation and amortization for continuing operations were $16.3 million, up from $16.1 million for the period last year.

Revenue per available room for the 96 hotels that the company controls declined 0.3% for the quarter, reflecting a 0.2% decrease in average daily rate and a 0.1% drop in occupancy. Of the company’s hotel portfolio, 82 are under the InterContinental Hotels Group and 10 are affiliated with six other nationally recognized hospitality brands. Five hotels are independent, unbranded properties. The 97th property is controlled by an independent company.

At the end of the third quarter, the company’s long-term debt total $485.4 million with an average interest rate of 6.3%.

“We continued to make progress on improving the quality and results at our hotels in third quarter,” says Lodgian president and CEO Thomas Parrington. “Even though our stabilized RevPAR decreased slightly during the quarter, the decline was substantially less than in the first six months of 2003.” He notes “there were positive signs of an economic rebound in the third quarter but business travel remained sluggish.”

In his filing with the Securities and Exchange Commission, Parrington says Lodgian is “focused on significantly improving the physical quality and service at our core hotels.” Year-to-date, the company has invested about $28 million in its properties and expect to invest an estimated $75 million by year-end 2004.

“While the short-term impact on results at those hotels is negative, due to the construction disruptions, we are seeing a positive response from our guests and employees at properties where the renovations are complete,” the Lodgian chief says.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.