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MHI Hospitality Corporation Receives 2007 Renovation Award for Laurel, Maryland Asset

11/05/2007

WILLIAMSBURG, Va., Nov. 5 /PRNewswire-FirstCall/ -- MHI Hospitality Corporation (Amex: MDH) announced today that the Holiday Inn Laurel West has received the 2007 Renovation Award from InterContinental Hotels Group [LON: IHG; NYSE: IHG (ADRs)]. The Company's Laurel, Maryland asset was awarded for having successfully completed major modernization and renovation programs during the past year in order to enhance guest experience.

The Holiday Inn Laurel West is a full service hotel situated midpoint on the Baltimore-Washington, DC corridor catering to both business and leisure travelers. The hotel features 207 guest rooms, business center, fitness facility and indoor pool. MHI Hospitality Corporation implemented an extensive renovation of the asset in September 2005, which included complete guest room package replacement, dramatic redesign of the public space, meeting rooms and exterior, as well as the addition of a new hotel Café and Outback Steakhouse. Renovations were completed in Spring 2006.

Andrew M. Sims, President and CEO of MHI Hospitality Corporation, stated, "We are delighted to receive the IHG 2007 Renovation Award for our Laurel hotel. The Holiday Inn Laurel West demonstrates the success of our strategic model in sourcing a well-located, underperforming property and, through upbranding and effective repositioning, unlocking that asset's inherent value."

The Holiday Inn Laurel West was honored at the 2007 IHG Americas Investors & Leadership Conference, October 22-24, 2007, in Dallas. The property was one of 45 hotels nationwide to receive the award.

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 eight properties comprising 1,973 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.

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. Economic conditions generally and the real estate market specifically, management and performance of the Company's hotels, plans for hotel renovations, financing plans, 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, legislative/regulatory changes, including changes to laws governing taxation of real estate investment trusts and competition, and other factors, may affect the Company's future results, performance and achievements. 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 we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially.

SOURCE MHI Hospitality Corporation

Contact: Bill Zaiser, Chief Financial Officer of MHI Hospitality Corporation, +1-301-220-5400, or General Information, Vicki Baker of Financial Relations Board, +1-703-796-1798
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