Ramada Riverfront Inn for Approximately $7.6 million,
or $41,000 per room
The purchase was structured to meet the requirements of a 1031 like-kind exchange, enabling the company to defer all capital gains on the sale in August of its Williamsburg property. To facilitate the closing of the acquisition, MHI accessed approximately $7.5 million from its line of credit, and approximately $200,000 in cash proceeds from the sale of its Williamsburg property.
This acquisition represents the company's first deep turn opportunity since its initial public offering. The company initially planned to have the property remain open during renovations; however management has decided that due to the scope of the project, the property will be closed through its completion. The restaurants in the adjacent building will remain open during the renovation stage. MHI expects the rebranded hotel to re-open in the third quarter 2007.
Andrew M. Sims, the president and CEO of the company stated, "We are pleased to close the acquisition of the Ramada Riverfront. Once our extensive renovations are completed, we believe that this repositioned and upbranded asset will be very competitive as the only upscale property in the growing Jeffersonville sub-market, across from Louisville on the Ohio riverfront. The area is benefiting from the introduction of several new businesses and light industrial parks."
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 and southeastern United States. Currently, the company's portfolio consists of seven properties for a total of 1,723 rooms, all of which operate under the Hilton and Intercontinental Hotels Group brands. In addition to these seven hotels, the company has a leasehold interest in the common area of a resort condominium property, Shell Island Resort, which has approximately 160 condominium suites owned by individual owners. The company is listed on the Russell Microcap(TM) Index, which is comprised of the smallest 1,000 securities in the small-cap Russell 2000(TM) Index along with the next 1,000 companies, based on a ranking of all U.S. equities by market capitalization.
This presentation 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.
MHI Hospitality Corporation
|Also See:||The Hilton Jacksonville Riverfront, Jacksonville's Fourth Largest Hotel, to be Rebranded Crowne Plaza by New Owner MHI Hospitality Corp. / August 2005|
|MHI Hospitality Corporation Completes Initial Public Offering, Reports 2004 Financial Results / March 2005|