SER ......
Friday December 11, 2:19 pm Eastern Time
Company Press Release
Servico and Impac Hotel Group Complete Merger
Transaction to Form Lodgian
ATLANTA--(BUSINESS WIRE)--Dec. 11, 1998--Lodgian, Inc. (NYSE:LOD - news), a nationwide owner and operator of
hotels, today announced closing of the merger of Servico, Inc., and Impac Hotel Group to form Lodgian, Inc. The merger,
which was originally announced in March, 1998, closed today and creates one of the nation's largest multi-brand
owner/operators of hotels.
Trading in Servico, Inc. common stock with the symbol SER will cease on the New York Stock Exchange at the close of
business today, December 11, 1998. Trading in Lodgian, Inc. common stock with the symbol LOD will commence on the
New York Stock Exchange Monday, December 14, 1998.
The transaction, which was previously approved by Servico shareholders and Impac unit holders, creates a lodging company
with a substantial portfolio of full service hotel properties in the mid and upper market segments, geographically dispersed
throughout the United States, Canada and Europe.
As part of the closing, the previously announced $265 million financing commitment from Lehman Brothers has been fully
funded. This financing bears interest at LIBOR plus 3.25% and has a two year maturity which represents the nearest term
maturity of any significant Lodgian debt obligation.
Concurrent with the completion of the merger, Robert S. Cole, formerly the President of Impac, becomes the Chief Executive
Officer of Lodgian. Lodgian's Board of Directors will consist of Joseph C. Calabro, Michael A. Leven, Peter Tyson and
Richard Weiner, all former members of the Board of Directors of Servico and Robert S. Cole and John Lang, both formerly
with Impac. Lodgian has also established an Office of the Chairman composed of directors Joseph C. Calabro, John Lang and
Michael A. Leven, with Joseph C. Calabro serving as acting chairman of the Office of the Chairman.
Commenting on the merger, Joseph C. Calabro stated, ''We are extremely pleased to successfully complete this merger. This
transaction marks Servico's entrance into additional major urban markets and creates new franchise relationships with Marriott
and Doubletree. We look forward to completing the integration of Servico and Impac and to focus on executing Lodgian's
1999 Business Plan.''
Robert S. Cole, Lodgian's Chief Executive Officer, stated, ''We are looking forward to creating the premier owner and
operator of hotels and a recognized leader in the hospitality industry. I am very enthusiastic about the complementary skills of
the two organizations. Servico has demonstrated remarkable operating results unparalleled in the hotel industry while Impac has
utilized its repositioning, development and management expertise to consistently improve hotel values.''
Lodgian owns or manages 143 hotels with more than 27,000 rooms in 35 states, Canada and Europe. The hotels are primarily
full service, providing food and beverage service as well as lodging and meeting facilities. Substantially all of Lodgian's hotels
are affiliated with nationally recognized hospitality franchises, including Crowne Plaza, Doubletree, Holiday Inn, Hilton,
Marriott, Omni, Radisson, Sheraton and Westin. With assets in excess of $1 billion, Lodgian is one of the largest hotel
owner/operators in the United States.
Statements in this release may be construed to be forward looking and are made pursuant to the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward looking statements involve risks and
uncertainties, including without limitation, risks relating to the operation and acquisition of hotels, risks relating to the availability
of capital and the ability to refinance debt, risks relating to the historical cyclicality of the lodging industry and other risks
identified in Lodgian's and Servico's SEC filings.
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