Lodgian, Inc. (AMEX: LGN) announced that it has sold the 147-room Holiday Inn hotel in Morgantown, W. Va. to an undisclosed buyer for $3.0 million.
All of the net proceeds were used to reduce the company's debt. In 2004, the hotel reported negative EBITDA (a non-GAAP measure) of $138,000 and a GAAP net loss of $538,000.
The sale is part of the company's previously announced plan to dispose of non-strategic hotels from its hotel portfolio. Including this property, Lodgian has sold 14 hotels since the program was announced in 2003 and reduced its debt by $49.2 million. Sperry Van Ness represented Lodgian in the sale of this property.
"We continue to review our hotel portfolio, and have recently included three additional properties on our list of non-strategic hotel assets for sale," said W. Thomas Parrington, president and chief executive officer. "As we continue to reduce our debt and our leverage, we will be recycling our sales proceeds into acquisitions that offer higher yields or better long-term growth potential. We recently acquired the 107-room SpringHill Suites by Marriott in Pinehurst, N.C., and have additional candidates in our pipeline."
The company now has eight hotels and one parcel of land in its disposition program.
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