X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

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.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.