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Market Instability Spurs Lodgian to Suspend Talks

ATLANTA-The hospitality player also identifies nine hotels it plans to sell, including a 243-room Crowne Plaza in Worcester, MA and a 217-room Holiday Inn in Frisco, CO.

By Melissa Kress | Updated on December 27, 2007

(Read more on the debt and equity markets.)

ATLANTA-Although it will continue to explore avenues to enhance shareholder value, including the sale of the company, Lodgian Inc. is suspending talks with interested parties. The locally based hospitality cited the volatility in the debt and credit markets, and its affect on any sale.

In January, Lodgian started to review strategic alternatives, hiring Goldman, Sachs & Co. and Genesis Capital LLC to aid in the effort. In August, Lodgian’s board of directors authorized the repurchase of up to $30 million if its common stock over a period ending no later than Aug. 22, 2009, as GlobeSt.com previously reported.In a statement earlier today, the company explains that its review “has reinforced the view of its board of directors that at the current market price, Lodgian’s shares are undervalued and that they represent an attractive opportunity for investment of the company’s available cash.”

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