QUOTE AND NEWS
DailyFinance  Mar 28  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/28/14 -- Legend Gold Corp. (the "Company" or "Legend Gold") (TSX VENTURE: LGN) announces the adoption by its Board of Directors of an Advance Notice Policy in respect of the election of...
StreetInsider.com  Mar 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Lodgian+%28LGN%29+Receives+Going+Concern+from+Deloitte+%26+Touche+LLP+for+Form+10-K/5446610.html for the full story.
New York Times  Jan 29  Comment 
The Deal Professor looks at Lone Star Funds' deal to acquire Lodgian, a hotel owner and operator, and assesses how private equity transactions have changed (or not) as a result of the financial crisis.
Globe Newswire  Jan 25  Comment 
CALGARY, Alberta, Jan. 25, 2010 (GLOBE NEWSWIRE) -- Skymark Research, a leading provider of small- and micro-cap independent investment research, today initiated coverage on Lodgian Inc. (AMEX:LGN). Skymark Research is currently offering a
Globe Newswire  Jan 22  Comment 
ATLANTA, Jan. 22, 2010 (GLOBE NEWSWIRE) -- Holzer Holzer & Fistel, LLC is investigating whether directors of Lodgian, Inc.  ("Lodgian" or the "Company") (NYSE:LGN) complied with their fiduciary duties in approving the proposed buyout of the Company
TheStreet.com  Jan 22  Comment 
Several stocks trading near $5 were moving on above-average volume during Friday's session.
MarketWatch  Jan 22  Comment 
Hotel operator Lodgian Inc. said Friday that it will be acquired by an affiliate of investment firm Lone Star Funds in a deal valued at about $270 million, including assumed debt. Under the terms, Lone Star will pay $2.50 a share for Lodgian's...
MarketWatch  Jan 22  Comment 
Companies whose shares were actively traded include AMD, AmEx, Capital One, GE, Google and Harley-Davidson.
Reuters  Jan 22  Comment 
** Hotel operator Lodgian Inc said it agreed to be acquired by an affiliate of investment firm Lone Star Funds for $2.50 a share in cash. [ID:nSGE60L0J9]
Wall Street Journal  Oct 6  Comment 
Ashford Hospitality is negotiating to revise loan terms on the Westin O'Hare, which no longer generates cash flow to cover payments.




 

Lodgian (AMEX:LGN) is franchise hotel company with 46 hotels in the U.S. and Canada. As a franchise operator, Lodgian does not own a hotel "brand" - a name like Hilton or Holiday Inn - Instead, the company pays the owners of hotel brands such as Hilton, Holiday Inn, and Marriott royalty payments in exchange for the right to operate hotels under their name.[1]

Business Overview

Business and Financial Metrics[2]

In 2009, LGN incurred a net loss of $52.4 million on total revenues of $188.5 million. This represents a 349.8% increase in net loss on a 17.4% decrease in revenues from 2008, when the company lost $12.0 million on $228.2 million in revenues.

Business Segments

The majority of Lodgian's business comes from its hotel operations. Of the 46 hotels Lodgian operates,[3] the majority operate under brand names that franchised their properties to Lodgian. Franchising is the business practice in which one company (such as Marriott International (MAR)) allows another (Lodgian in this case) to use its trademarks or business philosophies.[4] 44 of Lodgian's properties operate under franchised brand names, while only 2 are independent unbranded properties.[5] The company has only one reportable operating segment.[6]

Key Trends and Forces

Lodgian's North American emphasis makes it vulnerable to the fluctuating conditions of the U.S. Economy

Lodgian's emphasis on the U.S. market makes it more vulnerable to the declining conditions of the United States economy. The increasing oil prices and struggling U.S. housing market helped contribute to an overall harsh economy, which hurts Lodgian's growth.[7]

Lodgian's inability to take advantage of the booming hotel industry in China is detrimental to its business

Lodgian operates entirely in the North American market. The hotel market in China is shifting strongly towards branded hotels, as is its tourism industry, with China expected to become the world's number one travel destination within the next 10-15 years.[8] China's budget hotel ($50 or less/night) industry is growing substantially, with the number of budget hotel rooms growing from nearly zero to over 100,000 since 2000. During this boom, over 100 brands have been competing for a piece of this rapidly expanding tourist market, but Lodgian has as of yet been unable to put its foot in the door of the Chinese hotel industry.[9] With several of LGN's primary competitors, such as Intercontinental Hotels Group (IHG), Marriott International (MAR), and Starwood Hotels & Resorts Worldwide (HOT) entering the Chinese tourist market,[10] Lodgian's inability to do the same puts it at a competitive disadvantage for the foreseeable future.

Competition

Lodgian competes with hotel operators and franchisers throughout North America, the only market in which it operates:

  • Intercontinental Hotels Group (IHG) is the largest hotel company in the world by number of rooms, with 590,361 rooms in over 100 countries worldwide. IHG makes most of its money through the franchising of popular hotel chains such as Intercontinental Hotels and Resorts, Crowne Plaza Hotels and Resorts, Holiday Inn, and Holiday Inn Express.[8]
  • Marriott International (MAR) is a worldwide operator and franchiser of hotels and related lodging facilities. Although Lodgian is a franchiser of Marriott hotels, its non-LGN owned properties compete with Lodgian for business. The company's revenue is divided into five segments, all of which compete with Lodgian, except the International Lodging segment.[11]
  • Choice Hotels International (CHH), the company behind the nation's first hotel chain, is a franchiser of hotels around the world. Choice Hotels franchises over 5,400 hotels under brands such as Comfort Inn, Cambria Suites, Sleep Inn, Quality Inn, and EconoLodge in the US and more than 40 countries and territories.[12]
  • Wyndham Worldwide (WYN), another company whose properties are partially franchised by Lodgian, it is the largest hotel franchiser, vacation exchange network, and vacation ownership company in the world, owning properties in four continents.[13]

References

  1. Google Finance: LGN
  2. LGN 2009 10-K pg. 26  
  3. LGN 2006 10-K, Item 1: Business, page 1
  4. Wikipedia: Franchising
  5. Lodgian: About Lodgian
  6. LGN 2009 10-K pg. F-12  
  7. LGN 2007 10-K, Item 1A: Risk Factors, page 19
  8. 8.0 8.1 Wikinvest: IHG
  9. International Herald Tribune: China's budget hotel industry is booming as tourism grows
  10. AllBusiness: Starwood, Marriott, Hilton Enter Or Expand In Asia
  11. Google Finance: LVS
  12. Wikinvest: CHH
  13. Wikinvest: WYN
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