MHI Hospitality Corporation Completes $8.0 Million, 5.25 Percent, Secured Debt Financing
October 19 2011 - 8:30AM
Business Wire
MHI Hospitality Corporation (NASDAQ: MDH) (“MHI”
or the “Company”) today announced that it has successfully executed
a new $8.0 million secured loan with Premier Bank, Inc.
collateralized by a first mortgage on the Holiday Inn Brownstone
Hotel in Raleigh, North Carolina. The loan carries a term of five
years with an annualized interest rate of 5.25%. The loan may be
extended, at the Company’s option if certain conditions precedent
have been satisfied, for an additional five year period at an
interest rate of 300 basis points over the 5-year U.S. Treasury
Index. Proceeds from the loan will be used to pay down indebtedness
under the Company’s existing credit facility.
As previously outlined in a press release by the Company, MHI
has entered into a 10-year franchise agreement with Hilton
Worldwide to rebrand the Holiday Inn Brownstone as the Doubletree
by Hilton Brownstone-University. The Company expects to complete
the rebranding during the fourth quarter of 2011.
About MHI Hospitality Corporation
MHI Hospitality Corporation is a self-managed and
self-administered lodging REIT focused on the acquisition,
renovation, upbranding and repositioning of upscale to upper
upscale full-service hotels in the Mid-Atlantic and Southern United
States. Currently, the Company’s portfolio consists of investments
in ten hotel properties, nine of which are wholly-owned and
comprise 2,110 rooms. All of the Company’s wholly-owned properties
operate under the Hilton Worldwide, InterContinental Hotels Group
and Starwood Hotels and Resorts brands. The Company has a 25.0
percent interest in the Crowne Plaza Hollywood Beach Resort. The
Company also has a leasehold interest in the common area of Shell
Island Resort, a resort condominium property. MHI Hospitality
Corporation was organized in 2004 and is headquartered in
Williamsburg, Virginia. For more information please visit
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. 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 the
Company believes its current expectations to be based upon
reasonable assumptions, it can give no assurance that its
expectations will be attained or that actual results will not
differ materially.
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