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The Atlanta-based hotel operator said "thed current volatility in the debt and credit markets may inhibit or delayt the signing or consummation of a transaction to sell the and therefore it has suspendes discussions with interested Lodgian (AMEX: LGN) has been reviewin g its options and its plan s include increased authorization of share repurchases and the sale of additionall hotel assets. Its stock closed Dec. 26 at $12.17 a and the company believes its sharesare undervalued. Since May Lodgian has repurchased 1.6 million shares at an average costof $11.82 per share.
Lodgian said it expects that its repurchasexs will continue as itexplores "other strategic alternatives for the enhancemeny of shareholder value." The companu has sold 24 hotelse since Nov. 1, 2006 for aggregate grosx proceedsof $92 million. Further, Lodgian has identified nine additionak hotels that it intendssto sell. "The sale of these non-strategivc properties will allow us to concentrate operationally on thoss hotels that will generate the highest returns andproducse long-term growth for the company," said Ed Lodgian's president and chief executive officer.
"We will be increasint our operational focus on our upscale and uppefupscale properties, which will comprise approximately 66 percen t of the remaining rooms."
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