Financial

Lodgian Receives Audit Report with Going Concern Explanation

Lodgian, Inc. (NYSE Amex Equities: LGN) today announced that the audit report of its independent registered public accounting firm, Deloitte & Touche LLP, included in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, while expressing an unqualified opinion regarding the company's audited financial statements, identified matters which raise substantial doubt about the company's ability to continue as a going concern.

Lodgian Lodgian, Inc. (NYSE Amex Equities: LGN)  today announced that the audit report of its independent registered public accounting firm, Deloitte & Touche LLP, included in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, while expressing an unqualified opinion regarding the company's audited financial statements, identified matters which raise substantial doubt about the company's ability to continue as a going concern.  The company's announcement does not represent any changes or amendment to its 2009 financial statements or to its Form 10-K which was filed with the Securities and Exchange Commission on March 16, 2010.

As disclosed in the Form 10-K, the audit report raised substantial doubt about the company's ability to continue as a going concern because approximately $55.7 million of the company's mortgage debt is scheduled to mature in 2010.

This mortgage debt cannot be extended without the approval of the loan servicers.  The largest facility, the Merrill Lynch Fixed Rate Pool 1 indebtedness with a current principal balance of $33.9 million, matures on July 1, 2010.  To address this pending maturity, the company is pursuing opportunities to refinance the maturing mortgage debt.  However, in light of the current state of credit markets generally and the real estate credit markets specifically, the company cannot currently predict the outcome of these efforts.

About Lodgian

Lodgian is one of the largest independent owners and operators of full-service hotels in the United States.  The company currently owns and manages a portfolio of 28 hotels with 5,359 rooms located in 19 states.  Of the company's 28-hotel portfolio as of today, 14 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, and Holiday Inn Express), 8 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), two are Hilton brands, and four are affiliated with other nationally recognized franchisors including Starwood, Wyndham, and Carlson.



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