RFS Hotel Investors, Inc. Extends the Expiration Date of the Exchange Offer for Its Affiliates' Unregistered 9.75% Series A Senior Notes Due 2012

Press Release: RFS Hotel Investors, Inc.
June 17, 2002
MEMPHIS, TN -- RFS Hotel Investors, Inc. (NYSE:RFS) announced June 13 that its affiliates, RFS Partnership, L.P. and RFS 2002 Financing, Inc. (the "Issuers"), have extended their offer to exchange their 9.75% Series B Senior Notes due 2012, which have been registered under the Securities Act of 1933 (the "Registered Notes"), for an equal amount of unregistered 9.75% Series A Senior Notes due 2012 (the "Outstanding Notes"), to 5:00 p.m. EST on June 18, 2002. The original expiration date for this exchange offer was 5:00 p.m. EST on June 13, 2002, at which point, approximately $123.7 million of the $125 million aggregate principal amount of the Outstanding Notes had been tendered for exchange. The extension is intended to allow additional time for the holders of the remaining Outstanding Notes to tender them in exchange for the Registered Notes. As a result of the extension, tenders of the Outstanding Notes received to date may continue to be withdrawn on or prior to the new expiration date. Except for the extension of the expiration date, all other terms and provisions of the exchange offer remain unchanged.

The exchange offer is made only pursuant to the prospectus dated May 14, 2002, which has been filed with the Securities and Exchange Commission as part of the Issuers' Registration Statement on Form S-4. The registration statement was declared effective by the Securities and Exchange Commission on May 14, 2002.

Copies of the prospectus and transmittal materials governing the exchange offer may be obtained from the exchange agent, U.S. Bank National Association, by calling Mr. Frank P. Leslie at 651/244-8677 or by writing to the following address:

    U.S. Bank National Association
    180 East Fifth Street
    St. Paul, MN 55101
    Attention: Frank P. Leslie

RFS Hotel Investors is a real estate investment trust (REIT) that owns 58 hotels with approximately 8,400 rooms located in 24 states. RFS's hotel portfolio is diversified by geography, brand and segment. Leading brands under which RFS hotels are operated include Sheraton®, Residence Inn by Marriott®, Hilton®, Doubletree®, Holiday Inn®, Hampton Inn®, and Homewood Suites by Hilton®. By segment, RFS receives approximately 39% of its EBITDA from full service hotels, 35% from extended stay hotels, and 26% from limited service hotels. Additional information about RFS Hotel Investors can be found on its website at www.rfshotel.com.

Certain matters within this press release are discussed using forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. From time to time, these risks are discussed in RFS Hotel Investors' and the Issuer's filings with the Securities and Exchange Commission.

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Contact: 
     RFS Hotel Investors Inc., Memphis
     Cheryl Stewart, 901/767-7005