MHI Hospitality Corporation Receives Economic Development Award for Hampton, VA Asset

WILLIAMSBURG, Va., Oct. 29  /PRNewswire-FirstCall/ -- MHI Hospitality Corporation (NASDAQ:MDH) announced today that the Company received the Stakeholder of the Year Award for the Crowne Plaza Hampton Harborside.  The award was presented by the Downtown Hampton Development Partnership in recognition of a business or individual that contributed significantly to the city's new development or redevelopment over the past year.  The Stakeholder of the Year Award was presented to the hotel's general manager, Donald Davis, at an awards dinner taking place on October 22nd in Hampton.

The Company purchased the 172-room former Radisson Hotel for approximately $7.8 million in April 2008 and immediately commenced a $4.5 million renovation. In October the Company completed the hotel's conversion to the Crowne Plaza brand. The upbrand as well as a substantial portion of the renovations were completed six weeks ahead of original projections.

Andrew M. Sims, President and CEO of MHI Hospitality Corporation, stated, "We are delighted to be recognized by the Downtown Hampton Development Partnership for our repositioning efforts at the Crowne Plaza Hampton Harborside.  We have made considerable progress over the last six months in renovating this well-located and promising asset. When these efforts are complete we expect the hotel to be a valuable addition to the Greater Norfolk metropolitan area."

The full service waterfront hotel is located 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 a four-story, 300 car parking garage. The City of Hampton is part of the Greater Norfolk metropolitan area, along with the Virginia Beach resort area, the shipping and military hub of Newport News and historic Williamsburg, Virginia.

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 nine properties comprising 2,138 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/.

Forward-Looking Statements

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. 

DATASOURCE: MHI Hospitality Corporation



CONTACT:  Bill Zaiser, Chief Financial Officer of  MHI Hospitality

Corporation, [phone]; or Vicki Baker, General Information of Financial

Relations Board, [phone], for MHI Hospitality Corporation



Web site:  http://www.mhihospitality.com/ 

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