[Graphic Omitted] LODGIAN
October 20, 2000
Annual Shareholders Meeting
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AGENDA
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* Overview of Lodgian
* Summary of Recent Operating Results
* Key Accomplishments to Date
* Renovation & Repositioning Update
* Summary of Existing Strategy
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Who Is Lodgian?
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Crowne Plaza, Albany, NY
* 117 hotels
* 21,922 rooms
* Over 10,000 Associates
* More than $1.2 Billion in assets
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PREMIUM NATIONAL BRANDS
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HOLIDAY INN
HOTELS RESORTS 55.6%
HOLIDAY INN SELECT(R)
CROWNE PLAZA
HOTELS RESORTS 9.4%
MARRIOTT
HOTELS RESORTS SUITES 14.5%
HILTON 3.4%
SHERATON
HOTELS & RESORTS 3.4%
OTHER 13.7%
Other includes
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WESTIN
HOTELS & RESORTS
RADISSON
HOTELS WORLDWIDE
DOUBLETREE
HOTELS SUITES RESORTS CLUBS
INDEPENDENT
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REVPAR - 2000
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Increase vs. Last Year
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1999 2000
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Q1 43.66 44.96
Q2 52.03 53.36
Q3 53.36 56.57(est.)
*Q1 and Q2 consisted of 140,000 room nights out of order due to renovation
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EBITDA
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[Graphic Omitted]
In
millions
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1998 134*
1999 147
2000 150(est.)
* Proforma
Includes hotels sold during each year
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[Graphic Omitted] LODGIAN
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Key Accomplishments Year-to-Date
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Asset Sales -- Paying Down Debt
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2000 Year to date asset sales
Comfort Suites - Greenville February $ 2.9m
Sheraton - West Palm Beach February $ 16.5m
Office Unit/Condos - Silver Springs April $ 4.5m
Comfort Inn - San Antonio April $ 4.5m
Holiday Inn - St. Louis West April $ 3.325m
Holiday Inn Express - Nashville May $ 2.9m
Sunstone - 10 Properties August $132m
Holiday Inn Express - Ft. Pierce September $ 2.5m
17 TOTAL PROPERTIES $169.1m
TOTAL DEBT PAID DOWN $134.0m
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Financial Reporting Improvements
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* Developed and implemented over 30 new internal control policies
* Reorganized accounting departments
* Improved quality and quantity of accounting personnel
* Substantially current in reconciling significant accounts
* Systems integration substantially complete
* Executing financial executive recruitment plan
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Timeline for Filings
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Q1 2000 - 10Q Nov. 30, 2000
Q2 2000 - 10Q Nov. 30, 2000
Q3 2000 - 10Q Dec. 31, 2000
2000 - 10K Mar. 31, 2001
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Overhead Reductions
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* Eliminated 91 full time positions from corporate overhead
* Annualized savings of approximately $6 million
* Streamlined regional offices, revenue center operation, human resources,
IT, among other areas
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Associate Satisfaction Improvements
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Increase from 3.00 (Oct 1999) to
3.04 (June 2000) in ASI score
* 93% of employees feel they are allowed to do whatever it takes to satisfy
the guest
* 91% of employees say they are proud to work for their respective hotels
* 90% of employees say hotel management support them when they try to
satisfy the guest
* 80% of employees say their benefits are as good as other hotels (16%
improvement from 1999)
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Quality Awards
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* Bass Hotels & Resorts:
* "Torchbearer" - Holiday Inn, Fairmont WV
* "Quality Excellence" - Holiday Inn, Clarksburg, WV
* "Most Improved GSTS Score" - Holiday Inn, Miami FL
* "General Manager of the Year" - Holiday Inn, Austin TX
* Marriott International:
* "Highest Quality Score" - Courtyard, Bentonville AR
* "Platinum Status Award" - Courtyard, Bentonville AR
* "Best New Opening" - Marriott, Denver CO
* Other:
* "AAA - 4 Diamond Award" - Mayfair House, Coconut Grove FL
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[Graphic Omitted] LODGIAN
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Renovation & Repositioning Update
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Hotels Undergoing or Recently Received
Major Renovation - 2000
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* Crowne Plaza, Albany NY * Holiday Inn, Lancaster PA
* Holiday Inn, Belmont MD * Holiday Inn, Greentree PA
* Holiday Inn, BWI Airport MD * Holiday Inn, Rolling Meadows NY
* Holiday Inn, Cromwell Bridge MD * Crowne Plaza, West Palm Beach FL
* Holiday Inn, Inner Harbor MD * Holiday Inn, York PA
* Holiday Inn, E. Hartford CT * Holiday Inn, Jekyll Island GA
* Holiday Inn, Frederick MD * Hilton Inn, Columbia MD
* Holiday Inn, Glen Burnie MD * Holiday Inn Select, Niagra Falls NY
* Holiday Inn, Hilton Head * Holiday Inn, Grand Island NY
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Capital Expenditures 2000
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[Graphic Omitted]
$52 million spent
through June
$77 million estimated
at year end
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COMFORT IN - BOSTON, MA (Before)
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COURTYARD by MARRIOTT - BOSTON, MA (After)
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HOLIDAY INN - FREDERICK, MD (Before)
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HOLIDAY INN - FREDERICK, MD (After)
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[Graphic Omitted]
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HOLIDAY IN BWI AIRPORT - BALTIMORE, MD (Before)
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HOLIDAY IN BWI AIRPORT - BALTIMORE, MD (After)
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[Graphic Omitted]
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HOLIDAY INN INNER HARBOR - BALTIMORE, MD (Before)
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[Graphic Omitted]
HOLIDAY INN INNER HARBOR - BALTIMORE, MD (After)
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[Graphic Omitted]
HOLIDAY INN - BELMONT, MD (Before)
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[Graphic Omitted]
HOLIDAY INN - BELMONT, MD (After)
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[Graphic Omitted]
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CROWNE PLAZA - WEST PALM BEACH (Before)
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[Graphic Omitted]
CROWNE PLAZA - WEST PALM BEACH (After)
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[Graphic Omitted]
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CROWNE PLAZA - ALBANY (Before)
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[Graphic Omitted]
CROWNE PLAZA - ALBANY (After)
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[Graphic Omitted]
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[Graphic Omitted] LODGIAN
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Summary of Existing Strategy
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Existing Strategy
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* Maximize Shareholder Value through Competitive Sale Process
* Financial Reporting & Accounting Areas Improved
* Continued Asset Sales/Debt Reduction
* Continue Improving Quality of our Hotels
* Internal Growth through Repositioning Efforts
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[Graphic Omitted]
