RFS Hotel Investors, Inc. makes announcement.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--November 22, 1994--RFS Hotel Investors, Inc. (Nasdaq:RFSI RFSI Residential Fire Safety Institute (United States Fire Administration) RFSI Rust Federal Services, Inc. ), a Memphis-based real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) which owns hotel properties, announced today that the Company's board of directors is considering ways to mitigate or eliminate concerns expressed by some investors regarding the structure of hotel REITs, and to finance the Company's long-term growth and acquisition plan. The Company recently engaged Morgan Keegan & Company, Inc. as its financial advisor regarding these issues. Robert M. Solmson, president and chief executive officer of RFSI, said that, "While our Company has substantial cash, virtually no debt, and an unused line of credit, we believe it prudent for the Company to consider a number of strategic alternatives designed to facilitate financing of the Company's long-term growth plan and address investor concerns regarding potential conflicts of interest. By undertaking this analysis, we are attempting to fully explore all our options, including, but not limited to, relinquishing re·lin·quish tr.v. re·lin·quished, re·lin·quish·ing, re·lin·quish·es 1. To retire from; give up or abandon. 2. To put aside or desist from (something practiced, professed, or intended). 3. the Company's tax status as a REIT and acquiring the operating companies operating company A business that engages in transactions with outsiders. that lease and manage certain of our hotel properties. We should emphasize that the board has reached no conclusions. We expect to complete the analysis within approximately 30 days." Since its initial public offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) in August 1993, the Company has raised approximately $350 million of equity capital through four underwritten public offerings of common stock. RFSI owns 40 hotels with approximately 5,500 rooms in 22 states, up from seven hotels with 1,118 rooms in five states at the time of the IPO. CONTACT: Mimi Hall Communications, Memphis Mimi Hall, 901/682-1360 |
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