MHI Hospitality Corporation Announces Completion of Crowne Plaza Conversion for Hampton Hotel

MHI Hospitality Corporation (Nasdaq: MDH – News) announced today that the Company has completed the conversion of its Hampton, Virginia hotel to the Crowne Plaza® brand, pursuant to a 10-year franchise agreement through its franchising entity, Holiday Hospitality Franchising, Inc. with InterContinental Hotels Group (IHG) [LON: IHG, NYSE: IHG (ADRs)]. The Crowne Plaza® Hampton Harborside is the Company’s fourth Crowne Plaza® asset and sixth IHG branded hotel. The Company completed the conversion as well as a substantial portion of the planned renovations six weeks ahead of original projections.

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The Company purchased the 172-room former Radisson Hotel for approximately $7.8 million, or approximately $45,000 per room, in April 2008. 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.

Andrew M. Sims, President and CEO of MHI Hospitality Corporation, stated, “We are very pleased to bring our Hampton asset into the Crowne Plaza® system and to have completed substantial renovations at the property six weeks ahead of schedule. This upbranding, combined with our significant repositioning, will provide an attractive lodging destination in the Greater Norfolk Metropolitan area.”

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.