EXHIBIT 16
Casuarina Cayman Holdings Ltd.
207 Grandview Drive
Ft Mitchell, Ky 41017
July 13, 2000
Fax 404 364 0088
Robert Cole, President
Lodgian, Inc.
3445 Peachtree Road, N.E. Suite 700
Atlanta, GA 30325
Dear Mr. Cole:
It has come to my attention that you are in the process of selling a
group of 10 hotels, primarily on the west coast and consisting of approximately
2136 rooms, for approximately $ 132,000,000.
Having recently built hotels on the west coast, and with our overall
knowledge of the various markets involved, we believe that this is substantially
below both replacement cost, and current market value. These hotels represent
what we feel is the best potential for long term improvement in cash flows of
all the Lodgian properties.
I am certain that our organization would have offered at least $
10,000,000. above the quoted price, had we been given the opportunity to review
the hotels which were for sale. The fact that we were not given the opportunity
to review these hotels and submit a bid can only lead us to believe that these
hotels were poorly marketed and the price does not reflect the potential fair
market value in a competitive bid situation.
I believe that you, and the entire Board of Directors, are acting in a
self interested manner and are clearly not acting in the best interest of all
shareholders, particularly by not allowing all prospective buyers, including us,
to bid on the properties.
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In the interest of all shareholder's this transaction needs to be
stopped immediately, and a comprehensive marketing process instituted to
maximize value.
Very truly yours,
William J. Yung
President
cc: Joseph C. Calabro, Chairman
Fax 610-975-9715
Michael Leven, Director
Fax 404-321-4482
