Lodgian Provides Further Update on Remaining Maturing Mortgage Debt
07 Juli 2009 - 4:10PM
PR Newswire (US)
Obtains 30-day extension on mortgage pool, continues negotiations
for longer-term solution ATLANTA, July 7 /PRNewswire-FirstCall/ --
Lodgian, Inc. (NYSE Alternext US: LGN), one of the nation's largest
independent hotel owners and operators, today announced that the
company has obtained an extension of the maturity date for the
Merrill Lynch Fixed Rate Pool #3 ("Pool #3"). As of July 1, 2009,
the principal amount of Pool #3 was $45.7 million. The company and
the special servicer for Pool #3 have entered into an extension
agreement to extend the maturity date of this indebtedness until
August 1, 2009. Given the extension of the maturity date, the
company is not in default of the original loan. The company paid no
extension fee in connection with this short-term extension. The
30-day extension is intended to provide the parties an opportunity
to reach an agreement on a longer-term maturity extension. The
company and the special servicer are currently negotiating a
longer-term maturity extension for Pool #3; however, the company
can provide no assurances that the parties will reach such an
agreement. In the event that the company is unable to achieve a
long-term extension of Pool #3, the company expects that
anticipated cash flow from the hotels securing Pool #3 may not be
sufficient to meet the related debt service obligations and it may
be necessary to transfer the properties securing this indebtedness
to the lender in satisfaction of the company's obligations. A
schedule indicating the principal balance of Pool #3, as of July 1,
2009, as well as a listing of the hotels that serve as collateral
under Pool #3, is attached as an exhibit to this press release.
About Lodgian Lodgian is one of the nation's largest independent
hotel owners and operators. The company currently owns and manages
a portfolio of 38 hotels with 7,079 rooms located in 22 states. Of
the company's 38-hotel portfolio, 18 are InterContinental Hotels
Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and
Holiday Inn Express), 12 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
five are affiliated with other nationally recognized franchisors
including Starwood, Wyndham and Carlson. One hotel is an
independent, unbranded property, which is currently closed and held
for sale. For more information about Lodgian, visit the company's
website: http://www.lodgian.com/. Forward-Looking Statements This
press release contains forward-looking statements within the
meaning of the federal securities laws. All statements, other than
statements of historical facts, including, among others, statements
regarding Lodgian's negotiations with special servicers and
lenders, optional maturity extensions, property dispositions,
future financial position, business strategy, projected performance
and financing needs, are forward-looking statements. Those
statements include statements regarding the intent, belief or
current expectations of Lodgian and members of its management team,
as well as the assumptions on which such statements are based, and
generally are identified by the use of words such as "may," "will,"
"seeks," "anticipates," "believes," "estimates," "expects,"
"plans," "intends," "should" or similar expressions.
Forward-looking statements are not guarantees of future performance
and involve risks and uncertainties that actual results may differ
materially from those contemplated by such forward-looking
statements. Many of these factors are beyond the company's ability
to control or predict. Such factors include, but are not limited
to, the effects of regional, national and international economic
conditions, our ability to refinance or extend maturing mortgage
indebtedness, competitive conditions in the lodging industry and
increases in room supply, requirements of franchise agreements
(including the right of franchisors to immediately terminate their
respective agreements if we breach certain provisions), our ability
to complete planned hotel dispositions, the effects of
unpredictable weather events such as hurricanes, the financial
condition of the airline industry and its impact on air travel, the
effect of self-insured claims in excess of our reserves and our
ability to obtain adequate insurance at reasonable rates, and other
factors discussed under Item IA (Risk Factors) in Lodgian's Form
10-K for the year ended December 31, 2008. We assume no duty to
update these statements. Management believes these forward-looking
statements are reasonable; however, undue reliance should not be
placed on any forward-looking statements, which are based on
current expectations. All written and oral forward-looking
statements attributable to Lodgian or persons acting on its behalf
are qualified in their entirety by these cautionary statements.
Further, forward-looking statements speak only as of the date they
are made, and the company undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions,
the occurrence of unanticipated events or changes to future
operating results over time unless otherwise required by law.
Exhibit Merrill Lynch Fixed Rate Pool #3 Principal balance, as of
July 1, 2009 - $45.7 million Properties securing mortgage
indebtedness: -- Courtyard by Marriott - Bentonville, AR --
Courtyard by Marriott - Florence, KY -- Holiday Inn Inner Harbor -
Baltimore, MD -- Fairfield Inn by Marriott - Merrimack, NH --
Courtyard by Marriott - Abilene, TX -- Crowne Plaza - Houston, TX
Contact: Debi Ethridge Vice President, Finance & Investor
Relations (404) 365-2719 DATASOURCE: Lodgian, Inc. CONTACT: Debi
Ethridge, Vice President, Finance & Investor Relations of
Lodgian, Inc., +1-404-365-2719, Web Site: http://www.lodgian.com/
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