The 141-room Holiday Inn Express Gadsden-Attalla, Ala. was sold for $1.5 million, with net proceeds being used to reduce debt. For the twelve months ended August 31, 2005, the hotel produced Adjusted EBITDA (a non-GAAP financial measure) of $(45,000) and a net loss from operations of $(182,000). Jones Lang LaSalle Hotels-Select Service Division brokered the sale of the property.
The 422-room Holiday Inn Rolling Meadows, Ill., was sold for $5.0 million, with net proceeds being used for general corporate purposes. For the twelve months ended August 31, 2005, the hotel produced Adjusted EBITDA (a non-GAAP financial measure) of $(363,000) and a net loss from operations of $(383,000). CB Richard Ellis Hotels brokered the sale of the property.
The sales are part of the company's previously announced plan to dispose of non-core properties from its portfolio. Since the program was announced in 2003, Lodgian has sold 20 hotels (including these two properties), two land parcels and an office building, and reduced its debt by $71.7 million.
'We currently are marketing two hotels and one land parcel for sale,' said Ed Rohling, president and chief executive officer. 'Our core renovation program is nearly complete, with refurbishments in progress at six hotels. Our portfolio is in excellent physical condition, and our goal moving forward is to take maximum advantage of those upgrades.'
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