THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Lodgian, Inc. (LGN)

3/15/2006 Proxy Information

Key Colony Fund, LP and by Lieblong & Associates, Inc. own shares in the Company. Mr. Lieblong began his investment career in 1977. In November 1998, he founded Key Colony Fund, a hedge fund, and is also a Principal of Lieblong & Associates, a financial advisory firm and broker/dealer, which he formed in 1997.

Certain funds affiliated with Oaktree Capital Management, LLC (“Oaktree”) and The Blackstone Group (“Blackstone”), representatives of which serve or served on our board of directors during 2005, received 2,262,661 shares and 1,049,034 shares, respectively, of common stock that were exchanged for shares of our preferred stock previously owned by them at the time of our equity offering completed in June 2004. Approximately $26.3 million and $11.1 million of the net proceeds from the equity offering were used to redeem the remaining shares of Preferred Stock held by affiliates of Oaktree and Blackstone, respectively. Oaktree and Blackstone are currently the beneficial owners of 2,817,577 and 1,326,909 shares of our common stock, respectively.

Linda Philp, the Company’s executive vice president and chief financial officer, resigned effective December 16, 2005. Ms. Philp is expected to remain the company’s executive vice president and chief financial officer on a consulting basis until on or about March 15, 2006. The company was billed $20,050 for her consultancy services for the period December 19, 2005 to December 31, 2005 and $78,075 for the period January 1, 2006 to February 17, 2006.

Our Policy on Business Ethics addresses any conflicts of interests on the part of any employees that might cast doubt on an employee’s ability to act objectively when representing us. In addition to setting guidelines, the Policy on Business Ethics provides that each potential conflict of interest will be reviewed and the final decision as to the existence of a conflict made by our chief executive officer. Further, all related party transactions involving our directors or executive officers are reviewed by the Audit Committee, in accordance with the AMEX corporate governance rules.

2/28/2006 8K Information

Key Colony Fund, L.P. presently holds more than 10% of the Company’s outstanding shares. Mr. Lieblong owns and controls the sole general partner and manager of Key Colony Fund, L.P.

3/28/2005 Proxy Information

BRE/ HY Funding LLC (“BRE/ HY”) filed a Schedule 13D/ A with the Securities and Exchange Commission on June 25, 2004, reporting beneficial ownership of 1,326,909 shares of common stock. BRE/ HY’s business address is 345 Park Avenue, 31st Floor, New York, New York 10154. Kenneth A. Caplan, a managing director of The Blackstone Group (“Blackstone”), an affiliate of BRE/ HY, may be deemed to be a beneficial owner of securities owned by BRE/ HY. Blackstone owns 5.2% of LGN shares.

Mr. Armstrong is a Managing Director of Oaktree. Oaktree Capital Management owns 11% of LGN shares.

Mr. Bernard is a principal of Oaktree. Oaktree Capital Management owns 11% of LGN shares.

Certain funds affiliated with Oaktree Capital Management, LLC (“Oaktree”) and The Blackstone Group (“Blackstone”), representatives of which serve on our board of directors, received 2,262,661 shares and 1,049,034 shares, respectively, of common stock that were exchanged for shares of our preferred stock previously owned by them at the time of our equity offering completed in June 2004. Approximately $26.3 million and $11.1 million of the net proceeds from the equity offering were used to redeem the remaining shares of Preferred Stock held by affiliates of Oaktree and Blackstone, respectively. Oaktree and Blackstone are currently the beneficial owners of 2,817,577 and 1,326,909 shares of our common stock, respectively.

Until May 1, 2004, we had a revolving loan agreement with OCM Fund II that allowed us to borrow up to $2 million; however, all of our borrowings under that agreement were repaid in full in December 2003. The interest rate on the loan was 10% per annum, and in 2003 we paid $42,222 in interest to OCM Fund II on our borrowings. This revolving loan agreement was secured by two land parcels and expired on May 1, 2004. OCM Fund II is a greater than 10% stockholder, and Oaktree is the general partner of OCM Fund II. Russel S. Bernard, a principal of Oaktree and Sean F. Armstrong, a managing director of Oaktree, are directors of Lodgian.

Our Policy on Business Ethics addresses any conflicts of interests on the part of any employees that might cast doubt on an employee’s ability to act objectively when representing us. In addition to setting guidelines, the Policy on Business Ethics provides that each potential conflict of interest will be reviewed and the final decision as to the existence of a conflict made by our chief executive officer. Further, all related party transactions involving our directors or executive officers are reviewed by the Audit Committee, in accordance with the AMEX corporate governance rules.