News for the Hospitality Executive
MHI Hospitality Corporation Acquiring the 172-room former
Radisson Hotel in
Hampton, Virginia for Approximately $7.75 million, or $45,000 per room
|MHI Hospitality Corporation to Acquire Hampton, Virginia
Hotel for $7.75 Million
WILLIAMSBURG, Va., Feb. 26, 2008 - MHI Hospitality Corporation (Amex: MDH) announced today that the Company has entered into a definitive agreement to purchase the 172-room former Radisson Hotel in Hampton, Virginia for approximately $7.75 million, or approximately $45,000 per room. The waterfront hotel is located at 700 Settlers Landing Road on 3.5 acres in downtown Hampton. The property features 21,000 square feet of retail space, 7,600 square feet of flexible meeting space, a roof-top pool and four-story, 300 car parking garage. Hampton is part of the greater Norfolk metropolitan area, along with Virginia Beach, Newport News and historic Williamsburg, Virginia.
The Company also has obtained approval from InterContinental Hotels Group to operate the hotel under the Crowne Plaza brand. In conjunction with the rebranding, MHI Hospitality Corporation intends to extensively renovate the property. Asset closing is expected to take place in the second quarter of 2008, subject to customary closing conditions. To facilitate closing the Company will assume the property's existing $5.75 million first mortgage, and also may access funds from its line of credit. Major renovations are expected to be completed within nine months.
Andrew M. Sims, President and CEO of MHI Hospitality Corporation, stated, "We are pleased to announce the acquisition and rebranding of this well-positioned asset. With a commanding waterfront location, 21,000 square feet of on-site retail space, and proximity to businesses and tourist destinations, we believe the hotel is a promising addition to our portfolio."
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 1,973 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.
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.
MHI Hospitality Corporation
|Also See:||City of Hampton, Virginia Sues Owners of the Hampton Marina Hotel for $3.335 million; The Former Radisson a Symbol of the Potential Perils of Public-Private Partnerships / May 2007|
|About 240 Developers Have Requested Forms to Show 'Expression of Interest' in the 172 room Hampton Marina Hotel, Owned by the City of Hampton, Virginia / December 2007|