1066138--3/13/2009--LODGIAN

related topics

{debt, indebtedness, cash}

{stock, price, share}

{competitive, industry, competition}

{personnel, key, retain}

{condition, economic, financial}

{acquisition, growth, future}

{operation, natural, condition}

{tax, income, asset}

{loss, insurance, financial}

{capital, credit, financial}

{cost, contract, operation}

{cost, regulation, environmental}

{regulation, change, law}

{product, market, service}

{control, financial, internal}

{loan, real, estate}

Risks Related to Our Business We may be unable to refinance, extend or repay our substantial mortgage indebtedness maturing in July 2009, which could have a material adverse effect on our business, financial condition, results of operations and stock price. We may not be able to meet the requirements imposed by our franchisors in our franchise agreements and therefore could lose the right to operate one or more hotels under a national brand. Hotels typically require a higher level of capital expenditures, maintenance and repairs than other building types. If we are not able to meet the requirements of our hotels appropriately, our business and operating results will suffer. Market conditions and other factors may limit our ability to repay, extend or refinance our debt and fund our future capital needs. Even if we are able to refinance or extend our indebtedness, a substantial amount of indebtedness could limit our operational flexibility or otherwise adversely affect our financial condition. The terms of our debt instruments place many restrictions on us, which reduce operational flexibility and create default risks. Increases in interest rates could have an adverse effect on our cash flow and interest expense. The value of our hotels and our ability to service our indebtedness is dependent upon the successful operation and cash flows of our hotels. Our ability to generate cash depends on many factors beyond our control and a cash shortfall could adversely affect our ability to fund our operations, planned capital expenditures and other needs. The global economic crisis and adverse economic conditions in the specific major metropolitan markets in which we do substantial business could materially and adversely affect our business and results of operations. If we are not able to execute our strategic initiatives, we may not be able to improve our financial performance. We have a history of significant losses and we may not be able to successfully improve our performance to achieve profitability. Force majeure events, including natural disasters, acts and threats of terrorism, the ongoing war against terrorism, military conflicts and other factors have had and may continue to have a negative effect on the lodging industry and our results of operations. Our expenses may remain constant or increase even if revenues decline. We may make acquisitions or investments that are not successful and that adversely affect our ongoing operations. Losses may exceed our insurance coverage or estimated reserves, which could impair our results of operations, financial condition and liquidity. Competition in the lodging industry could have a material adverse effect on our business and results of operations. The lodging business is seasonal. We are exposed to potential risks of brand concentration. We have experienced significant changes in our senior management team and Board of Directors. Our success is dependent on recruiting and retaining high caliber key personnel. The increasing use of third-party travel websites by consumers may adversely affect our profitability. We will be unable to utilize all of our net operating loss carryforwards. Many aspects of our operations are subject to government regulations, and changes in these regulations may adversely affect our results of operations and financial condition. Costs of compliance with environmental laws and regulations could adversely affect operating results. Risks Related to Our Common Stock Our stock price may be volatile, and consequently, investors may be unable to resell their common stock at or above their purchase price. We may never pay dividends on our common stock, in which event our stockholders only return on their investment, if any, will occur on their sale of our common stock.

Full 10-K form ▸

1066138--3/13/2009--LODGIAN_INC