MHI Hospitality Corporation Completes $7.5 Million, 5.25 Percent, Secured Debt Financing

WILLIAMSBURG, Va.--(BUSINESS WIRE)--MHI Hospitality Corporation (NASDAQ: MDH) (the “Company”) today announced that it has successfully executed a new $7.5 million secured loan with the Bank of Georgetown collateralized by a first mortgage on the Holiday Inn Laurel West Hotel in Laurel, Maryland. The loan carries a term of ten years, with an annualized interest rate of 5.25% for the first five years, converting to the greater of 5.25% or 300 basis points over the 5-year U.S. Treasury Index for the remaining five years. Proceeds from the loan will be used to pay down indebtedness under the Company’s existing credit facility.