MHI Hospitality to Purchase Crowne Plaza SIAN Resort
Hollywood, Florida for $74 Million
WILLIAMSBURG, VA, June 4, 2007. MHI Hospitality Corporation (Amex: MDH) ("MHI") announced today that its subsidiary, MHI Hollywood LLC, has entered into a definitive agreement to purchase the Crowne Plaza SIAN Resort in Hollywood, Florida for $74,000,000 from developer MCZ/Centrum VI Owner, L.L.C. ("MCZ/Centrum"). Under the agreement, the hotel will be purchased in fee simple. MHI had previously announced an agreement to acquire the commercial space of the hotel, which was initially structured as a condominium hotel. As outlined by the purchase agreement, the condominium aspects of the hotel will be eliminated.
The newly renovated 311-room Crowne Plaza Sian Resort is located on a barrier island on the South Florida coast between the Intracoastal Waterway and the Atlantic Ocean. The resort hotel features approximately 12,000 square feet of meeting space, a retail food and beverage outlet, a large outdoor swimming pool and 300 valet parking spaces. A contiguous hotel development site owned by MCZ/Centrum will be leased to the purchaser for a term of four years with an option to purchase the site at any time during the lease term.
Andrew M. Sims, President and Chief Executive Officer of MHI Hospitality Corporation, commented, "The Crowne Plaza SIAN Resort, with its prime South Florida coastal location, is an attractive and highly promising property. The resort also extends our footprint into the dynamic south Florida hospitality market."
MHI intends to complete the transaction through a joint venture structure and intends to retain a 25% equity position in the hotel. Closing is subject to customary conditions and is expected to take place late in the third quarter of 2007.
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