MHI Hospitality redeems $2.1 million series A cumulative preferreds

By Marisa Wong

Madison, Wis., March 28 - MHI Hospitality Corp. announced the redemption of 1,901.547 shares of its series A cumulative redeemable preferred stock for a total redemption price of roughly $2.1 million plus accrued cash and stock dividends.

The company said it also increased its mortgage secured by its Doubletree by Hilton Brownstone-University hotel from lender Premier Bank, Inc. to $10 million from $8 million.

Proceeds from the amended loan were used to redeem a portion of the preferreds.

The company said the combined transaction results in interest expense savings of about $115,000.

MHI is a Williamsburg, Va.-based real estate investment trust focused on the acquisition, renovation, upbranding and repositioning of upscale to upper upscale full-service hotels.

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