Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(c) On December 9, 2008, Lodgian, Inc. (the "Company") appointed Joseph F. Kelly, 51, as Vice President of Hotel Operations. Mr. Kelly replaces James McGrath, who resigned from the Company effective November 13, 2008. In this role, Mr. Kelly will be responsible for the daily operations of the Company's hotels, including sales and marketing and revenue management.

Mr. Kelly has over 25 years of experience in the hospitality industry and has been employed by the Company since 2002. Prior to his promotion, Mr. Kelly served in roles of increasing responsibility with Lodgian as Regional Director of Sales and Marketing from November 2002 to September 2004; Regional Operations Manager from September 2004 to January 2008; and as Regional Vice President of Operations since January 2008.

Mr. Kelly has a degree in Business Administration from the State University of New York at Buffalo, New York and served as an Adjunct Professor in the Hotel and Restaurant Management program at Tompkins Cortland Community College from 1997 to 2001.

In connection with Mr. Kelly's promotion, his annual base salary was set at $235,000. The Company made no other changes to Mr. Kelly's compensation.

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