MDH Mhi Hospitality Corp. (MM)

WILLIAMSBURG, Va., April 24 /PRNewswire-FirstCall/ -- MHI Hospitality Corporation (NASDAQ:MDH) announced today that the Company has completed the acquisition of the 172-room former Radisson Hotel in Hampton, Virginia for approximately $7.75 million, or $45,000 per room. The Company has also entered into a 10-year franchise agreement with InterContinental Hotels Group (IHG) [(LON: IHG) (NYSE:IHG) (ADRs)] through its franchising entity, Holiday Hospitality Franchising, Inc., to brand the hotel as the Crowne Plaza(R) Hampton Harborside. The full service waterfront hotel is located on 3.5 acres in downtown Hampton. The City of Hampton is part of the Greater Norfolk metropolitan area, along with the Virginia Beach resort area, the shipping and military hub of Newport News and historic Williamsburg, Virginia. The property features 21,000 square feet of retail space, 7,600 square feet of flexible meeting space, a roof-top pool and a four-story, 300 car parking garage. In conjunction with the rebranding, MHI Hospitality Corporation intends to commence extensive renovations of the property. Repositioning is expected to be completed within nine months of closing. Andrew M. Sims, President and CEO of MHI Hospitality Corporation, stated, "We are pleased to finalize the acquisition of this well-situated asset and to commence a significant repositioning in conjunction with the hotel's upbranding. With our investment in the Crowne Plaza(R) Hampton Harborside we continue to broaden our geographic reach throughout the Mid Atlantic and Southeast and to enhance our platform of full service lodging assets." About MHI Hospitality Corporation MHI Hospitality Corporation is a self-advised lodging REIT focused on the acquisition, redevelopment and management of mid-scale, upscale and upper upscale full service hotels in the Mid-Atlantic, Midwest and Southeastern United States. Currently, the Company's portfolio consists of eight properties comprising 2,143 rooms, all of which operate under the Hilton, InterContinental Hotels Group and Starwood Hotels and Resorts brands. In addition, the Company has a 25 percent interest in the Crowne Plaza Resort Hollywood Beach and a leasehold interest in the common area of Shell Island Resort, a resort condominium property. MHI Hospitality Corporation was organized in 2004 and is listed on the Russell Microcap(TM) Index. The Company is headquartered in Williamsburg, Virginia. For more information please visit http://www.mhihospitality.com/. Forward-Looking Statements This news release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable, these statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond the Company's control. Therefore, actual outcomes and results may differ materially from what is expressed, forecasted or implied in such forward-looking statements. Economic conditions generally and the real estate market specifically, management and performance of the Company's hotels, plans for hotel renovations, financing plans, supply and demand for hotel rooms in the Company's current and proposed market areas, the Company's ability to acquire additional properties and the risk that potential acquisitions may not perform in accordance with expectations, legislative/regulatory changes, including changes to laws governing taxation of real estate investment trusts and competition, and other factors, may affect the Company's future results, performance and achievements. These risks and uncertainties are described in greater detail under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent reports filed with the Securities and Exchange Commission. The Company undertakes no obligation and does not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially. DATASOURCE: MHI Hospitality Corporation CONTACT: Bill Zaiser, Chief Financial Officer of MHI Hospitality Corporation, +1-301-220-5400; or General Information, Vicki Baker of Financial Relations Board, +1-703-796-1798, for MHI Hospitality Corporation Web site: http://www.mhihospitality.com/

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