Lodgian Inc. said a receiver, Driftwood Hospitality Management of North Palm Beach, Fla., has been named to operate, manage and maintain its 243-room Crowne Plaza in Worcester, Mass.

The receiver was named after the Atlanta REIT defaulted on the hotel's $16.3 million mortgage, which was securitized through Wachovia Bank Commercial Mortgage Trust, 2006-C25.

Last month, Lodgian did not make the mortgage's required $112,405 principal and interest payments. At the time, the company said it would start negotiating with the CMBS deal's special servicer, CWCapital Asset Management, to convey the property. It said the property does not generate enough cash flow to service its debt.

The property generated only $600,000 in net operating income over the past 12 months, according to Lodgian. That's less than half of what's needed to service its mortgage debt.

The hotel's occupancy through the end of August was 42.3 percent, down from 53.5 percent during the same period a year ago. Revenue per available room was $45.70, down from $56.83 a year ago.

Comments? E-mail Orest Mandzy or call him at (215) 504-2860, Ext. 211.