MHI Host Company (NASDAQ: MDH) (the “Company”) announced today that it has successfully executed a new secured loan of $ 7.5 million from the Bank of Georgetown, secured by a first mortgage on the Holiday Inn Laurel hotel. West in Laurel, Maryland. The loan has a ten-year term, with an annualized interest rate of 5.25% for the first five years, converted to the greater of 5.25% or 300 basis points on the US Treasury Index at 5. years for the remaining five years. The proceeds of the loan will be used to repay indebtedness under the Company’s existing credit facility.
Andrew M. Sims, President and CEO of the Company, said: “This is the first step in our strategy to replace variable rate corporate debt with fixed rate mortgage debt and leverage attractive interest rate environment, positioning our balance sheet for long-term stability.
On MHI Host Company
MHI Hospitality Corporation is a self-managed, self-administered accommodation REIT focused on acquiring, renovating, branding and repositioning high-end full-service high-end hotels in the Mid-Atlantic and southern United States. Currently, the Company’s portfolio consists of investments in ten hotel properties, nine of which are 100% owned and include 2,110 rooms. All of the Company’s wholly owned properties operate under the Hilton Worldwide, InterContinental Hotels Group and Starwood Hotels and Resorts brands. The Company owns a 25.0% interest in the Crowne Plaza Hollywood Beach Resort. The Company also has a leasehold interest in the Common Area of Shell Island Resort, a resort condominium. MHI Hospitality Corporation was established in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.mhihospitality.com.