Lodgian Notes Damage to Fla. Properties

Lodgian Inc., an independent owner and operator of full-service hotels, announced that its five Florida properties have experienced damage ranging from minor to significant due to Hurricane Frances.

“We, along with many other hotel companies, were affected by the one-two punch of Hurricanes Charley and Frances,” W. Thomas Parrington, president and CEO, commented. “Fortunately, no staff or guests were injured during the course of these storms. With a third major storm, Hurricane Ivan, now headed toward the Florida coast, it is difficult to accurately gauge the effect of these storms on revenues and earnings during the third quarter. We intend to provide an update after we determine the effect, if any, of Hurricane Ivan.”

Three hotels suffered limited damage and are fully open and operating, including the Holiday Inn Express Pensacola, the Holiday Inn Pensacola and the Holiday Inn Winter Haven. The Crowne Plaza West Palm Beach and Holiday Inn Melbourne experienced more significant damage, including extensive water penetration.

The 219-room Crowne Plaza West Palm Beach remains partially open and is expected to fully open by the end of September. The 295-room Holiday Inn Melbourne has been closed since Sept. 1, 2004, when a mandatory emergency evacuation order was issued for the area. “We cannot determine a reopening date at this time, but will proceed as quickly as possible,” Parrington added.

Teams of company executives and contractors are on site at the two properties and have begun repairs. It is expected, pending a final opinion from the insurance adjusters, that repairs at the two hotels will exceed the insurance deductibles.

The company currently manages a portfolio of 87 hotels with 16,366 rooms located in 30 states and Canada.