A well located hotel sits shuttered and desolate . . .

. . . To many it represents a better past; to MHI Hospitality Corporation ("MDH") it represents potential for a better future.

The Company and its predecessor entity have had a long and successful history of instituting growth strategies focused on renovating and upbranding underperforming hotels, while at the same time improving the operating results of our initial portfolio.

Our experience has proven that many troubled properties have outstanding inherent value. Unlocking it requires vision, acumen, and diligence - qualities that we bring to every opportunity. At MHI we create value through a singular focus: excellence in product and performance.

We believe that investments in the hospitality industry made with experienced knowledge and prudence can bear outstanding results. Opportunities are developed, not discovered. Execution is the critical factor.

Edgar Sims, Jr. - attorney, community leader, dedicated father - started our family business more than 50 years ago, on a foundation of quality, integrity and hospitality. Those values still guide us today. For now, and for the future, they remain the hallmarks that ensure satisfaction for our guests, our employees and our business partners.

MHI Hospitality Corporation is a self-advised real estate investment trust ("REIT") formed in August 2004 to own and manage a portfolio of full-service upper up-scale, up-scale and mid-scale hotels located in primary and secondary markets in the Mid-Atlantic, Midwest and Southeastern United States. On December 21, 2004, we successfully completed our initial public offering and elected to be treated as a self-advised real estate investment ("REIT") for federal income tax purposes. We conduct our business through MHI Hospitality, L.P., our operating partnership, of which we are the general partner. Our Company owns approximately 65.0% of the partnership units in our operating partnership. Limited partners (including our officers and certain of our directors) own the remaining operating partnership units.

MHI Hospitality is publicly traded on the NASDAQ under the symbol “MDH”.