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<SEC-DOCUMENT>0000950133-07-000116.txt : 20070112
<SEC-HEADER>0000950133-07-000116.hdr.sgml : 20070112
<ACCEPTANCE-DATETIME>20070112100814
ACCESSION NUMBER:		0000950133-07-000116
CONFORMED SUBMISSION TYPE:	SC 13G/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070112
DATE AS OF CHANGE:		20070112

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FERRIS BAKER WATTS INCORPORATED
		CENTRAL INDEX KEY:			0001179436
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		SC 13G/A

	BUSINESS ADDRESS:	
		STREET 1:		1700 PENNSYLVANIA AVE NW
		STREET 2:		SUITE 700
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20006
		BUSINESS PHONE:		202-661-9500

SUBJECT COMPANY:	

	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

	FILING VALUES:
		FORM TYPE:		SC 13G/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-80544
		FILM NUMBER:		07527245

	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>SC 13G/A
<SEQUENCE>1
<FILENAME>w28865bsc13gza.htm
<DESCRIPTION>SCHEDULE 13G/A
<TEXT>
<HTML>
<HEAD>
<TITLE>sc13gza</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="right">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="15%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="98%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
<TD width="1%" style="border-left: 1px solid #000000; border-top: 1px solid #000000; border-bottom: 1px solid #000000">&nbsp;</TD>
<TD align="center" valign="top" style="border-top: 1px solid #000000; border-bottom: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">OMB APPROVAL</DIV></TD>
<TD width="1%" style="border-right: 1px solid #000000; border-top: 1px solid #000000; border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">OMB Number: 3235-0145</DIV></TD>
<TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Expires: February&nbsp;28, 2009</DIV></TD>
<TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Estimated average burden hours per response...11</DIV></TD>
<TD width="1%" style="border-right: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
<TD nowrap align="left" colspan="3" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

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</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>SCHEDULE 13G</B>

<P align="center" style="font-size: 12pt"><B>Under the Securities Exchange Act of 1934<BR>
(Amendment No.&nbsp;1)*</B>

<DIV align="center" style="font-size: 24pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">MHI HOSPITALITY CORPORATION</DIV>
<DIV align="center" style="font-size: 10pt">(Name of Issuer)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">COMMON STOCK SHARES</DIV>
<DIV align="center" style="font-size: 10pt">(Title of Class of Securities)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">55302L102</DIV>
<DIV align="center" style="font-size: 10pt">(CUSIP Number)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">OCTOBER 5, 2005</DIV>
<DIV align="center" style="font-size: 10pt">(Date of Event Which Requires Filing of this Statement)</DIV>

<P align="left" style="font-size: 10pt">Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#254;</FONT>&nbsp;Rule 13d-1(b)
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;Rule 13d-1(c)
<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;Rule 13d-1(d)

<P align="left" style="font-size: 10pt">* The remainder of this cover page shall be filled out for a reporting person&#146;s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.

<P align="left" style="font-size: 10pt">The information required in the remainder of this cover page shall not be deemed to be &#147;filed&#148; for the purpose of Section&nbsp;18 of the Securities Exchange Act of 1934 (&#147;Act&#148;) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

<P align="left" style="font-size: 10pt"><B>Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.</B>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt">
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->





<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">CUSIP No.</DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000">55302L102&nbsp;</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAMES OF REPORTING PERSONS:<BR>
Ferris, Baker Watts, Incorporated</TD>
</TR>
<TR valign="bottom"> <TD style="border-left: 1px solid #000000">&nbsp;</TD> <TD colspan="4" align="left">&nbsp;</TD> </TR> <TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY):&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"></TD>
</TR>


<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS):<BR><BR></TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#254;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY:</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION:</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">Delaware</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER:</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">2,220</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER:</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER:</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">2,220</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH:</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER:</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">1,193,175</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON:</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">1,195,395</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (9)&nbsp;EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS):</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9):</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">17.83&#37;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON (SEE INSTRUCTIONS):</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">IA</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>
<P align="center" style="font-size: 10pt"> &nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>Instructions for
Cover Page</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1) <I>Names and I.R.S.
Identification Numbers of Reporting Persons&#151;</I>Furnish the
full legal name of each person for whom the report is filed&#151;i.e., each person
required to sign the schedule itself&#151;including each member of a group. Do not
include the name of a person required to be identified in the report but who is
not a reporting person. Reporting persons are also requested to furnish their
I.R.S. identification numbers, although disclosure of such numbers is
voluntary, not mandatory (see &#147;SPECIAL INSTRUCTIONS FOR COMPLYING WITH SCHEDULE
13G&#148;, below).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2) If any of the shares
beneficially owned by a reporting person are held as a
member of a group and that membership is expressly affirmed, please check row
2(a). If the reporting person disclaims membership in a group or describes a
relationship with other person but does not affirm the existence of a group,
please check row 2(b) &#091;unless it is a joint filing pursuant to Rule&nbsp;13d-1(k)(1)
in which case it may not be necessary to check row 2(b)&#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(3) The third row is
for SEC internal use; please leave blank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(4) <I>Citizenship or
Place of Organization</I>&#151;Furnish citizenship if the named
reporting person is a natural person. Otherwise, furnish place of organization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(5)-(9),
(11) <I>Aggregated Amount Beneficially Owned By Each Reporting Person,
etc.</I>&#151;Rows (5)&nbsp;through (9)&nbsp;inclusive, and (11)&nbsp;are to be completed in
accordance with the provisions of Item&nbsp;4 of Schedule&nbsp;13G. All percentages are
to be rounded off to the nearest tenth (one place after decimal point).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(10) Check if the
aggregate amount reported as beneficially owned in row 9 does
not include shares as to which beneficial ownership is disclaimed pursuant to
Rule&nbsp;13d-4
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">under the Securities
Exchange Act of 1934.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(12) <I>Type of
Reporting Person</I>&#151;Please classify each &#147;reporting person&#148;
according to the following breakdown (see Item&nbsp;3 of Schedule&nbsp;13G) and place the
appropriate symbol on the form:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>Category</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><I>Symbol</I></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Broker Dealer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">BD</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bank</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">BK</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Insurance Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">IC</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">IV</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Investment Adviser</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">IA</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Employee Benefit Plan or Endowment Fund</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">EP</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent Holding Company/Control Person</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">HC</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Savings Association</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">SA</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Church Plan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CP</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CO</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Partnership</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">PN</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Individual</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">IN</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">OO</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Notes:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attach as many copies of the second part of the cover page as are needed, one reporting
person per page.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Filing persons may, in order to avoid unnecessary duplication, answer items on the
schedules (Schedule&nbsp;13D, 13G, or 14D-1) by appropriate cross references to an item or
items on the cover page(s). This approach may only be used where the cover page item or
items provide all the disclosure required by the schedule item. Moreover, such a use of
a cover page item will result in the item becoming a part of the schedule and
accordingly being considered as &#147;filed&#148; for purposes of Section&nbsp;18 of the Securities
Exchange Act or otherwise subject to the liabilities of that section of the Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reporting persons may comply with their cover page filing requirements by filing either
completed copies of the blank forms available from the Commission, printed or typed
facsimiles, or computer printed facsimiles, provided the documents filed have identical
formats to the forms prescribed in the Commission&#146;s regulations and meet existing
Securities Exchange Act rules as to such matters as clarity and size (Securities
Exchange Act Rule&nbsp;12b-12).
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL INSTRUCTIONS FOR COMPLYING WITH SCHEDULE 13G</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under Sections&nbsp;13(d), 13(g), and 23 of the Securities Exchange Act of 1934 and the rules
and regulations thereunder, the Commission is authorized to solicit the information
required to be supplied by this schedule by certain security holders of certain issuers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Disclosure of the information specified in this schedule is mandatory, except for I.R.S.
identification numbers disclosure of which is voluntary. The information will be used
for the primary purpose of determining and disclosing the holdings of certain beneficial
owners of certain equity securities. This statement will be made a matter of public
record. Therefore, any information given will be available for inspection by any member
of the public.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Because of the public nature of the information, the Commission can utilize it for a
variety of purposes, including referral to other governmental authorities or securities
self-regulatory organizations for investigatory purposes or in connection with
litigation involving the Federal securities laws or other civil, criminal or regulatory
statues or provisions. I.R.S. identification numbers, if furnished, will assist the
commission in identifying security holders and, therefore, in promptly processing
statements of beneficial ownership of securities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Failure to disclose the information requested by this schedule, except for I.R.S.
identification numbers, may result in civil or criminal action against the persons
involved for violation of the Federal securities laws and rules promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>General Instructions</I></B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Statements filed pursuant to Rule&nbsp;13d-1(b) containing the information
required by this schedule shall be filed not later than February&nbsp;14 following
the calendar year covered by the statement or within the time specified in
Rules&nbsp;13d-1(b)(2) and 13d-2(c). Statements filed pursuant to Rule&nbsp;13d-1(c)
shall be filed within the time specified in Rules&nbsp;13d-1(c), 13d- 2(b) and
13d-2(d). Statements filed pursuant to Rule&nbsp;13d-1(d) shall be filed not later
than February&nbsp;14 following the calendar year covered by the statement pursuant
to Rules&nbsp;13d-1(d) and 13d-2(b).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information contained in a form which is required to be filed by
rules under Section 13(f) for the same calendar year as that covered by a
statement on this schedule may be incorporated by reference in response to any
of the items of this schedule. If such information is incorporated by reference
in</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this schedule, copies of the relevant pages of such form shall be filed as
an exhibit to this schedule.</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The item numbers and captions of the items shall be included but the
text of the items is to be omitted. The answers to the items shall be so
prepared as to indicate clearly the coverage of the items without referring to
the text of the items. Answer every item. If an item is inapplicable or the
answer is in the negative, so state.</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;1.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Item&nbsp;1(a) Name of issuer:<BR>
MHI Hospitality Corporation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Item&nbsp;1(b) Address of issuer&#146;s principal executive offices:<BR>
4801 Courthouse Street<BR>
Suite&nbsp;201<BR>
Williamsburg, VA 23188
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;2.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2(a) Name of person filing:<BR>
Ferris, Baker Watts, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2(b) Address or principal business office or, if none, residence:<BR>
100 Light Street<BR>
Baltimore, MD 21202
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2(c) Citizenship:<BR>
Delaware Corporation
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2(d) Title of class of securities:<BR>
Common Stock
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2(e) CUSIP No.:<BR>
55303L102
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;3.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If this statement is filed pursuant to Rules&nbsp;13d-1(b), or 13d-2(b) or (c), check whether
the person filing is a:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">a.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Broker or
dealer registered under Section&nbsp;15 of the Act.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">b.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Bank as defined in Section&nbsp;3(a)(6) of the Act.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">c.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Insurance company as defined in Section&nbsp;3(a)(19) of the Act.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">d.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Investment company registered under Section&nbsp;8 of the Investment
Company Act of 1940.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">e.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">An investment adviser in accordance with Rule&nbsp;13d-1(b)(1)(ii)(E);</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">f.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">An employee benefit plan or endowment fund in accordance with
Rule&nbsp;13d-1(b)(1)(ii)(F);</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="80%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">g.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A parent holding company or control person in accordance with
Rule&nbsp;13d-1(b)(1)(ii)(G);</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">h.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A savings associations as defined in Section&nbsp;3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813);</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">i.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the Investment Company Act of
1940;</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">j.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Group, in accordance with Rule&nbsp;13d-1(b)(1)(ii)(J).</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;4. </B>Ownership
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Provide the following information regarding the aggregate number and percentage of the
class of securities of the issuer identified in Item&nbsp;1.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Amount beneficially owned: 1,195,395</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Percent of class: 17.83%</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Number of shares as to which such person has:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">i.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sole power to vote or to direct the vote: 2,220</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shared power to vote or to direct the vote: 0</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sole power to dispose or to direct the disposition of: 2,220</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">iv.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shared power to dispose or to direct the disposition of: 1,193,175</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%"><B>Instruction. </B>For computations regarding securities which represent a
right to acquire an underlying security see Rule&nbsp;13d-3(d)(1).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;5.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ownership of 5 Percent or Less of a Class. If this statement is being filed to report
the fact that as of the date hereof the reporting person has ceased to be the beneficial
owner of more than 5&nbsp;percent of the class of securities, check the following &#091; &#093;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Instruction. </B>Dissolution of a group requires a response to this item.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not applicable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;6.</B> Ownership of More than 5 Percent on Behalf of Another Person
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any other person is known to have the right to receive or the power to direct the
receipt of dividends from, or the proceeds from the sale of, such securities, a
statement to that effect should be included in response to this item and, if such
interest relates to more than 5&nbsp;percent of the class, such person should be
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"> identified.
A listing of the shareholders of an investment company registered under the Investment
Company Act of 1940 or the beneficiaries of employee benefit plan, pension fund or
endowment fund is not required.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ferris, Baker Watts, Inc. is the beneficial owner of approximately 1,193,175 shares of
MHI Hospitality Corporation held in discretionary accounts at the firm. Individual
discretionary account owners retain the right to direct the receipt of dividends from,
or the proceeds from the sale of MHI Hospitality Corporation shares. Individual
ownership of MHI Hospitality Corporation shares does not exceed 5&nbsp;percent in any single
discretionary account or combination of related or affiliated accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;7. </B>Identification and Classification of the Subsidiary Which Acquired the Security
Being Reported on by the Parent Holding Company or Control Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If a parent holding company or control person has filed this schedule pursuant to Rule
13d-1(b)(1)(ii)(G), so indicate under Item 3(g) and attach an exhibit stating the
identity and the Item&nbsp;3 classification of the relevant subsidiary. If a parent holding
company or control person has filed this schedule pursuant to Rule&nbsp;13d-1(c) or Rule
13d-1(d), attach an exhibit stating the identification of the relevant subsidiary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not Applicable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;8. </B>Identification and Classification of Members of the Group
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If a group has filed this schedule pursuant to Rule&nbsp;13d-1(b)(ii)(J), so indicate under
Item 3(j) and attach an exhibit stating the identity and Item&nbsp;3 classification of each
member of the group. If a group has filed this schedule pursuant to Rule&nbsp;13d-1(c) or
Rule&nbsp;13d-1(d), attach an exhibit stating the identity of each member of the group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not Applicable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;9. </B>Notice of Dissolution of Group
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notice of dissolution of a group may be furnished as an exhibit stating the date of the
dissolution and that all further filings with respect to transactions in the security
reported on will be filed, if required, by members of the group, in their individual
capacity. See Item&nbsp;5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not applicable
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;10. </B>Certifications
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following certification shall be included if the statement is
filed pursuant to Rule&nbsp;13d-1(b):</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt; margin-left: 6%; margin-right:6%; font-size: 10pt">By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired and are
held in the ordinary course of business and were not acquired
and are not held for the purpose of or with the effect of
changing or influencing the control of the issuer of the
securities and were not acquired and are not held in connection
with or as a participant in any transaction having that purpose
or effect.
</DIV>

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</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Signature.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dated: 01/11/07

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Signature:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Dana Gloor

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For Ferris, Baker Watts, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Name/Title:

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dana Gloor<BR>
Associate General Counsel<BR>
Ferris, Baker Watts, Inc.

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The original statement shall be signed by each person on whose behalf the statement is
filed or his authorized representative. If the statement is signed on behalf of a person
by his authorized representative other than an executive officer or general partner of
the filing person, evidence of the representative&#146;s authority to sign on behalf of such
person shall be filed with the statement, <I>provided, however, </I>that a power of attorney
for this purpose which is already on file with the Commission may be incorporated by
reference. The name and any title of each person who signs the statement shall be typed
or printed beneath his signature.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Note: </B>Schedules filed in paper format shall include a signed original and five copies of
the schedule, including all exhibits. See Rule&nbsp;13d-7 for other parties for whom copies
are to be sent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attention: Intentional misstatements or omissions of fact constitute Federal criminal
violations (see 18 U.S.C. 1001).
</DIV>



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</DIV>


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