MHI Hospitality Corporation Declares Dividend for Fourth Quarter 2011

MHI Hospitality Corporation (NASDAQ: MDH) (the “Company”) today announced that its Board of Directors has declared a quarterly cash dividend of $0.02 per common share of beneficial interest for the quarter ending December 31, 2011. The fourth quarter dividend will be paid on January 11, 2012 to shareholders of record as of December 15, 2011.

About MHI Hospitality Corporation

MHI Hospitality Corporation is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper upscale full-service hotels in the Mid-Atlantic and Southern United States. Currently, the Company’s portfolio consists of investments in ten hotel properties, nine of which are wholly-owned and comprise 2,110 rooms. All of the Company’s wholly-owned properties operate under the Hilton Worldwide, InterContinental Hotels Group and Starwood Hotels and Resorts brands. The Company has a 25.0 percent interest in the Crowne Plaza Hollywood Beach Resort. The Company also has a leasehold interest in the common area of Shell Island Resort, a resort condominium property. MHI Hospitality Corporation was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information please visit www.mhihospitality.com.