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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0001181431-06-011267.txt : 20060214
<SEC-HEADER>0001181431-06-011267.hdr.sgml : 20060214
<ACCEPTANCE-DATETIME>20060214161405
ACCESSION NUMBER:		0001181431-06-011267
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060214
DATE AS OF CHANGE:		20060214

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Sims Christopher
		CENTRAL INDEX KEY:			0001304017

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32379
		FILM NUMBER:		06615248

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		301-220-5410

	MAIL ADDRESS:	
		STREET 1:		6411 IVY LANE
		STREET 2:		SUITE 510
		CITY:			GREENBELT
		STATE:			MD
		ZIP:			20770

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MHI Hospitality CORP
		CENTRAL INDEX KEY:			0001301236
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		814 CAPITOL LANDING ROAD
		CITY:			WILLIAMSBURG
		STATE:			VA
		ZIP:			23185
		BUSINESS PHONE:		757-229-5648

	MAIL ADDRESS:	
		STREET 1:		814 CAPITOL LANDING ROAD
		CITY:			WILLIAMSBURG
		STATE:			VA
		ZIP:			23185
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>rrd107916.xml
<DESCRIPTION>FORM 5
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2005-12-31</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <form3HoldingsReported>0</form3HoldingsReported>

    <form4TransactionsReported>1</form4TransactionsReported>

    <issuer>
        <issuerCik>0001301236</issuerCik>
        <issuerName>MHI Hospitality CORP</issuerName>
        <issuerTradingSymbol>MDH</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001304017</rptOwnerCik>
            <rptOwnerName>Sims Christopher</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>6411 LVY LANE, SUITE 570</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>GREENBELT</rptOwnerCity>
            <rptOwnerState>MD</rptOwnerState>
            <rptOwnerZipCode>20770</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Operating Partnerhip Units</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F4"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-07-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>23849</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F4"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2006-07-22</value>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F3"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>23849</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>629318</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Operating Partnership Units in MHI Hospitality, L.P., MHI Hospitality Corporation's operating subsidiary.</footnote>
        <footnote id="F2">Holders of operating partnership units of MHI Hospitality, L.P. may not exercise the right to have such units redeemed prior to the one year anniversary of the issuance of the units without prior approval of the board of directors. 605,166 units were issued in connection with the issuer's initial public offering on December 21, 2004. The remaining units were transferred to an entity in which the reporting person has a direct interest as consideration to complete the acquisition of the Hilton Jacksonville Riverfront Hotel on July 22, 2005. None of the units have been redeemed.</footnote>
        <footnote id="F3">There is no expiration date to the redemption right.</footnote>
        <footnote id="F4">MHI Hospitality, L.P. is required to redeem the operating partnership units in exchange for cash, or at MHI Hospitality's option, shares of MHI Hospitality Corporation's common stock. The cash redemption amount per unit is based on the market priced of the common stock at the time of redemption.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Sims Christopher L.</signatureName>
        <signatureDate>2006-02-02</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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