WILLIAMSBURG, Va., July 7 /PRNewswire-FirstCall/ -- MHI
Hospitality Corporation (Nasdaq: MDH) announced today that the
Company has exercised its option to extend the scheduled maturity
date of the $18.0 million mortgage on
the Crowne Plaza Jacksonville Riverfront Hotel. The new maturity
date is July 22, 2011.
Andrew M. Sims, President and
Chief Executive Officer of the Company, commented, "We believe this
extension presents significant value in today's economy. It is also
a prudent step toward enhancing our financial flexibility."
The Crowne Plaza Jacksonville Riverfront is a fully repositioned
292-room hotel with an on-site Ruth's Chris Steakhouse and 12,000
square feet of meeting space. The Company's asset is the first
hotel in the City of Jacksonville
to participate in Florida's Green
Lodging Program.
About MHI Hospitality Corporation
MHI Hospitality Corporation is a self-managed 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, InterContinental Hotels Group
and Starwood Hotels and Resorts brands. The Company has a 25
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.
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. Factors
which could have a material adverse effect on the Company's future
results, performance and achievements, include, but are not limited
to: national and local economic and business conditions, including
the recent economic downturn, that will affect occupancy rates at
the Company's hotels and the demand for hotel products and
services; risks associated with the hotel industry, including
competition, increases in wages, energy costs and other operating
costs; the availability and terms of financing and capital and the
general volatility of the securities markets, specifically, the
impact of the current credit crisis which has severely constrained
the availability of debt financing; risks associated with the level
of the Company's indebtedness, its ability to meet covenants in its
debt agreements and, if necessary, to refinance or seek an
extension of the maturity of such indebtedness; management and
performance of the Company's hotels; risks associated with the
conflicts of interest of the Company's officers and directors;
risks associated with redevelopment and repositioning projects,
including delays and cost overruns; 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; and legislative/regulatory changes, including changes
to laws governing taxation of real estate investment trusts. 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 the
Company believes its current expectations to be based upon
reasonable assumptions, it can give no assurance that its
expectations will be attained or that actual results will not
differ materially.
SOURCE MHI Hospitality Corporation