MEMPHIS, TN— RFS Hotel Investors, Inc. is offering one million shares of common stock, with delivery of the shares sold in this offering expected to occur on or about February 20. The REIT, which owns 58 hotels in 24 states, has granted the underwriter an option to purchase up to 150,000 additional shares of common stock to cover over-allotments. The underwriter proposes to offer the shares of common stock over time for sale in negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices.