MHI Hospitality Corporation Announces Signing of Bristol Bar & Grille at Sheraton Louisville Riverside

WILLIAMSBURG, Va., Oct. 11 /PRNewswire-FirstCall/ — MHI Hospitality Corporation (Amex: MDH) announced today the execution of a ten-year lease agreement with The Bristol Bar & Grille (“The Bristol”) at the Sheraton Louisville Riverside Hotel in Jeffersonville, Indiana. The Bristol is a full service, locally-owned restaurant and catering business that celebrated 30 years of operations in September. The Bristol also will provide, on an exclusive basis, the hotel’s catering, banquet and in-room meal delivery services. The lease was executed with Bristol Indian, LLC. The transaction was brokered by Paul Grisanti of Grisanti-Head Commercial Real Estate.

The Sheraton Louisville Riverside Hotel is a 186-room property located on the Ohio River directly across from Louisville, Kentucky that was acquired by the company in September 2006. The hotel is currently undergoing an extensive renovation, which is scheduled to be completed in early 2008. In February 2007 the company also executed a 15-year license agreement with Starwood Hotels and Resorts to brand the hotel as a Sheraton. David Folsom, executive vice president and chief operating officer of MHI Hospitality Corporation, commented, “We are very pleased to announce the addition of The Bristol Bar & Grille at our Sheraton Riverside asset. The Bristol is a well-recognized fine dining establishment in the Louisville area. Its modern American menu and overall reputation should further strengthen the appeal of the hotel asset for both private dining and group events.”

“The Bristol Bar & Grille is very excited to be a part of MHI Hospitality’s Sheraton Louisville Riverside Hotel development,” added restaurant owner and founder Doug Gossmann. “This is a prime location for the Bristol’s first site in Indiana, and the restaurant will be enhanced even more by the opening of the new hotel.”

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 seven properties comprising 1,723 rooms, all of which operate under the Hilton, InterContinental Hotels Group and Starwood Hotels and Resorts brands. In addition, the company 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 listed on the Russell Microcap(TM) Index. The company is headquartered in Williamsburg, Virginia. For more information please visit http://www.mhihospitality.com.

SOURCE MHI Hospitality Corporation

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