June 16, 2010 (FinancialWire) — MHI Hospitality Corp. (NASDAQ: MDH) said that it has filed a registration statement on Form S-11 with the Securities and Exchange Commission for a proposed public offering of up to $125 million of its common stock.

The number of shares to be offered and the price range for the offering have not yet been determined, according to MHI.

MHI plans to sell its common stock in an underwritten public offering with Stifel, Nicolaus & Co. and Janney Montgomery Scott acting as joint book-running managers for the offering.  

The company plans to grant the underwriters a 30-day option to purchase additional shares to cover over-allotments, if any.  

MHI said it expects to use the net proceeds of the offering to further strengthen its balance sheet, including repaying outstanding debt under its credit line, repaying or repurchasing certain of its mortgage debt, funding working capital, pursuing acquisition opportunities and for other general corporate purposes.

Virginia-based MHI Hospitality is a self-managed and self-administered lodging REIT focused on the acquisition of upscale to upper upscale full-service 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 wholly-owned and comprise 2,110 rooms.

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