|By April Taylor, Daily Press, Newport News, Va.|
Knight Ridder/Tribune Business News
Dec. 7, 2004 - WILLIAMSBURG, Va. -- A local hotel investment firm has filed to sell six million shares of common stock, with plans to qualify as a real estate investment trust that owns full-service hotels.
MHI Hospitality Corp. hopes to sell shares at $9 to $11 each, hoping to raise more than $54 million from an initial public offering, underwritten by BB&T Capital Markets.
The company plans to trade on the New York Stock Exchange under the ticker "MDH."
At the completion of its public offering, the firm will own six full-service hotels in the mid-Atlantic and southeastern states under the Holiday Inn and Hilton names, including the Holiday Inn Downtown on Capitol Landing Road in Williamsburg.
The company, which revamps distressed or underperforming properties, is planning a half-million dollar renovation of its Williamsburg property.
The property includes The Holiday Inn Downtown, located at 814 Capitol Landing Road, which was built in 1968 and last renovated in 2000. The 137-room hotel employs about 70 workers.
MHI Hospitality Corp. has offices in Williamsburg and Greenbelt, Md. Other properties include the Hilton Jacksonville Riverfront in Jacksonville, Fla., and the Hilton Wilmington Riverside in Wilmington, N.C.
MHI Hospitality was founded by Edgar Smith Jr. in 1957 in a small motel owned by Smith in College Park, Md. In the mid-1990s, the family-run company began to focus its attention on finding and remodeling troubled properties.
Operating under the name of MHI Hotels Services Group, company sales reached roughly $52 million last year, up from $10 million 15 years ago.
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