LODGIAN INC
8-K, EX-99.1, 2000-10-13
HOTELS & MOTELS
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                              [LODGIAN LETTERHEAD]


         LODGIAN RECEIVES SALE PROPOSAL; POSTPONES ANNUAL SHAREHOLDER
                                     MEETING

                       Thursday, October 12, 2000 03:30 AM

         ATLANTA, Oct. 12 Lodgian, Inc. (NYSE: LOD) announced today that it has
postponed its annual shareholder meeting, scheduled for today, until Friday,
October 20, 2000, in order to give shareholders the opportunity to consider
important information relating to the board's receipt of a sale proposal.

         Whitehall Street Real Estate Limited Partnership XIII and Whitehall
Parallel Real Estate Limited Partnership XIII ("Whitehall") have made a proposal
to the Lodgian board to acquire all of the outstanding shares of the Company for
a cash purchase price of $4.50 per share, subject to certain adjustments and
Lodgian's right to terminate the transaction if the consideration to be paid to
shareholders is less than $4.00 per share. Whitehall is the most recent real
estate investment fund sponsored by Goldman, Sachs & Co. The final terms of the
transaction must be approved by the Company's board of directors and would be
submitted to a shareholder vote.

         Lodgian also announced that it has granted Whitehall an exclusive
period of 60 days to conduct confirmatory due diligence and negotiate definitive
agreements for the transaction. If at the end of the due diligence period, the
Company and Whitehall have not entered into definitive agreements for the
transaction, Lodgian will reimburse Whitehall the expenses it incurs in
connection with evaluating and pursuing the transaction, up to a maximum of
$3,500,000. Robert S. Cole, chief executive officer of Lodgian, said, "As we
have previously communicated, a sale of the Company would be a strategic move
that is consistent with our goal of maximizing shareholder value."

         On January 12, 2000, Lodgian announced that it had engaged Morgan
Stanley Dean Witter to assist its board of directors in the exploration of
strategic alternatives for the purpose of maximizing shareholder value. Morgan
Stanley Dean Witter will continue to advise the Company throughout the sale
process.

     About Lodgian

         Lodgian, Inc. owns or manages a portfolio of 117 hotels with
approximately 21,700 rooms in 32 states and Canada. The hotels are primarily
full service, providing food and beverage service, as well as meeting
facilities. Substantially all of Lodgian's hotels are affiliated with nationally
recognized hospitality brands such as Holiday Inn, Crowne Plaza, Marriott,
Sheraton, Hilton, Doubletree and Westin.

         Lodgian's common shares are listed on the New York Stock Exchange under
the symbol "LOD". Lodgian is a component of both the Russell 2000(R) Index,
representing small cap stocks, and the Russell 3000(R) Index, representing the
broader market.

     Forward-Looking Statements

         Note: Statements in this press release that are not strictly historical
are "forward-looking" statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements involve known and unknown risks, which may cause the
Company's actual results in the future to differ materially from expected
results. These risks include, among others, the termination of the letter of
intent, competition within the lodging and contract service industries; the
relationship between supply and demand for hotel rooms; the effects of economic
conditions; issues associated with the ongoing integration of the former
Servico, Inc. and Impac Hotel Group, LLC; the acquisition and renovation of
existing hotels and the development of new hotels; operating risks; the cyclical
nature of the lodging industry; risks associated with the dependence on
franchisers of the Company's lodging properties; and the availability of capital
to finance planned growth, as described in the Company's filings with the
Securities and Exchange Commission.

         For more information on Lodgian toll-free via fax, dial 1-800-PRO-INFO
(1-800-776-4636), follow the voice menu prompts and enter the company ticker LOD
(or 563) or visit the Lodgian page on the FRB web site at www.frbinc.com Visit
Lodgian at www.lodgian.com

     SOURCE Lodgian, Inc.

         CONTACT: Robert Cole, Chief Executive Officer, 404-365-3800, or
[email protected], or Thomas Eppich, Chief Financial Officer, 404-365-4469, or
[email protected], both of Lodgian; or Leslie Hunziker General Information,
312-640-6760, or [email protected], or Georganne Palffy, analysts-
investors, 312-640-6768, or [email protected], both of Financial Relations
Board-BSMG



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