Lodgian Opens Crowne Plaza Melbourne, Florida Following Multi-Million Dollar Conversion

ATLANTA, Jan. 25 /PRNewswire-FirstCall/ -- Lodgian, Inc. , one of the nation's largest independent owners and operators of full-service hotels, today announced the opening of the 272-room Melbourne-Oceanfront Crowne Plaza in Florida, following completion of a 15-month renovation and conversion from the Holiday Inn brand. The hotel had been closed due to severe damage sustained during the 2004 hurricanes that struck Florida.

The hotel underwent a comprehensive renovation and upgrade to repair damage and to bring the property up to the Crowne Plaza standards. "The hotel is essentially 'brand new,' and has moved into the upper upscale segment with the Crowne Plaza brand," said Ed Rohling, Lodgian president and chief executive officer. "It now is arguably the finest property on Florida's 'Space Coast.' The opening occurs just as the busy winter season is getting into full swing, and we have received very favorable response from both business and leisure guests during our aggressive pre-opening marketing campaign."

"Lodgian has done a marvelous job in restoring and upgrading this ocean- front resort, which will appeal to leisure guests visiting this highly popular tourist destination, as well as attract business travelers who are calling on the numerous major corporations located in the area," said Steve Porter, president, InterContinental Hotels Group, the Americas.

Nestled on the beach, the hotel has been completely made over. The building exterior is entirely new, including new facia, railings and deck furniture. Of the 272 completely refurbished guest rooms and suites, 75 percent of the rooms feature ocean views. The beach is steps away from the property's new 6,000-square-foot Brazilian redwood ocean deck. The spacious lobby has been upgraded with touches of granite and marble coupled with deep rich wall finishes in a boutique design. A health and fitness center and complimentary business center offer 24-hour service. The property's swimming pool and deck area have been completely rebuilt and are surrounded by lush landscaping, offering panoramic views of the Atlantic Ocean.

Guests also will have panoramic ocean views from the hotel's new restaurant, Coquina's, which features local seafood cuisine in an upscale atmosphere, and at On the Rocks, the hotel's new indoor/outdoor lounge.

The property's former lounge was converted into a multi-purpose meeting room, bringing the hotel's meeting space to more than 10,000 square feet, and now capable of handling groups of up to 350 people. With the rich enhancements of the hotel and substantial meeting space now available, the Crowne Plaza Melbourne Oceanfront plans to aggressively target the group meetings market.

All guests rooms were totally upgraded and feature the "Crowne Plaza's Sleep Advantage" program, which includes premium beds and bedding, guaranteed wake-up calls, designated quiet zones, night lights, drape clips, sleep CDs, sleep tips and amenities, such as eye masks, ear plugs and lavender spray. Twenty-eight new one-bedroom family suites were created that include full kitchens. Rooms are equipped with iron/ironing board, coffee maker and hairdryer. Guest rooms and public spaces offer complimentary high-speed Internet access.

"In addition to our beach/coastal location, we are centrally located near a number of tourist destinations, which are less than an hour away, including the Kennedy Space Center, DisneyWorld and Universal Studios," said Tim Michaud, general manager. "Melbourne Airport provides daily direct service through Delta Airlines from the key airports of Atlanta, Washington National and New York JFK." Additionally, Com Air provides Saturday non-stop service from Cincinnati. The Crowne Plaza Melbourne Oceanfront provides complimentary shuttle service to and from the airport for its guests.

Lodgian is one of the largest independent owners and operators of full- service hotels in the United States. The company currently owns and/or manages a portfolio of 78 hotels with 14,097 rooms located in 29 states and Canada. Of the company's 78-hotel portfolio, 49 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express) 16 are Marriott brands (Courtyard by Marriott, Fairfield Inn, SpringHill Suites and Residence Inn), and 11 are affiliated with four other nationally recognized hospitality franchises such as Hilton and Carlson (Radisson and Park Inn). Two hotels are independent, unbranded properties. For more information about Lodgian, visit the company's Web site: http://www.lodgian.com/.

This press release includes forward-looking statements related to Lodgian's operations that are based on management's current expectations, estimates and projections. These statements are not guarantees of future performance and actual results could differ materially.

The words "guidance," "may," "should," "expect," "believe," "anticipate," "project," "estimate," "plan," and similar expressions are intended to identify forward-looking statements. Certain factors are not within the company's control and readers are cautioned not to put undue reliance on forward-looking statements. These statements involve risks and uncertainties including, but not limited to, the company's ability to generate sufficient working capital from operations and other risks detailed from time to time in the company's SEC reports. The company undertakes no obligations to update events to reflect changed assumptions, the occurrence of unanticipated events or changes to future results over time.

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