MHI Hospitality Corporation to Purchase Crowne Plaza
in Hollywood, Florida for $74 Million
Va., June 4, 2007 - MHI Hospitality Corporation (Amex: MDH) ("MHI") announced
today that its subsidiary, MHI Hollywood LLC, has entered into a definitive
agreement to purchase the Crowne Plaza SIAN Resort in Hollywood, Florida
for $74,000,000 from developer MCZ/Centrum VI Owner, L.L.C. ("MCZ/Centrum").
Under the agreement, the hotel will be purchased in fee simple. MHI had
previously announced an agreement to acquire the commercial space of the
hotel, which was initially structured as a condominium hotel. As outlined
by the purchase agreement, the condominium aspects of the hotel will be
The newly renovated 311-room Crowne Plaza Sian Resort is located on
a barrier island on the South Florida coast between the Intracoastal Waterway
and the Atlantic Ocean. The resort hotel features approximately 12,000
square feet of meeting space, a retail food and beverage outlet, a large
outdoor swimming pool and 300 valet parking spaces. A contiguous hotel
development site owned by MCZ/Centrum will be leased to the purchaser for
a term of four years with an option to purchase the site at any time during
the lease term.
Andrew M. Sims, President and Chief Executive Officer of MHI Hospitality
Corporation, commented, "The Crowne Plaza SIAN Resort, with its prime South
Florida coastal location, is an attractive and highly promising property.
The resort also extends our footprint into the dynamic south Florida hospitality
MHI intends to complete the transaction through a joint venture structure
and intends to retain a 25% equity position in the hotel. Closing is subject
to customary conditions and is expected to take place late in the third
quarter of 2007.
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 seven properties comprising 1,723 rooms, all of which operate under
the Hilton, InterContinental Hotels Group and Starwood Hotels and Resorts
brands. In addition, the company has a leasehold interest in the common
areas 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 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.