News for the Hospitality Executive
MHI Hospitality Corp Acquires the 250-room Former Clarion
Hotel in Tampa, Florida for
$13.5 million, $54,000 per room; Planning a $20 million Renovation
and Crowne Plaza Rebranding
WILLIAMSBURG, Va., Oct. 31, 2007 - MHI Hospitality Corporation (Amex: MDH) announced today that the Company has completed the acquisition of the 250-room former Clarion Hotel in Tampa, Florida for $13.5 million, or $54,000 per room. The hotel is situated on 3.82 acres in Tampa’s Westshore Corridor, the city’s corporate, entertainment, restaurant and shopping district, and is within two miles of Tampa International Airport. The asset located at 5303 West Kennedy Blvd., features 10,000 square feet of meeting space, a full service restaurant, outdoor pool and approximately 250 surface parking spaces.
To facilitate acquisition closing, the Company accessed the purchase
price of approximately $13.5 million from its line of credit. Consistent
with the Company’s portfolio repositioning strategy, MHI Hospitality will
rebrand the hotel and commence a $20.0 million capital improvement program
with major physical renovations to be completed by the first quarter of
2009. The hotel will remain closed until major renovations are complete.
Andrew M. Sims, President and CEO of MHI Hospitality Corporation, stated, “We are very pleased to finalize the acquisition of this well-located Gulf coast asset. With its scale and amenities the property is an excellent portfolio fit. The acquisition also extends our footprint in the dynamic Florida market.”
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™ 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.
MHI Hospitality Corporation
|Also See:||After $3 million Renovation the Former Park Plaza Hotel Reflagged as The Clarion Hotel Tampa Westshore / February 2004|
|Highland Hospitality Corporation Acquires the 238-room Hilton Tampa Westshore for $29.5 million; Approximately $124,000 per room / January 2004|