RFSI Files For Listing On New York Stock Exchange.

MEMPHIS, Tenn.--(BUSINESS WIRE)--August 2, 1996--RFS Hotel Investors, Inc. (Nasdaq symbol: RFSI) today announced it has filed an application to list its common stock on the New York Stock Exchange (NYSE).

Trading of RFS stock on the NYSE is expected to begin on or about September 6, 1996, under the stock symbol RFS.

RFS President Minor Perkins said the company decided to seek NYSE listing as a further move to enhance shareholder value. "The New York Stock Exchange is the premier marketplace for equity securities in the world," said Perkins. "We believe the visibility gained by listing on the NYSE will help inform investors of the continued growth and enormous potential of our hotel company." Perkins added the Company believes the NYSE auction market will provide tighter spreads and better liquidity for RFS's stock. The New York Stock Exchange is the world's largest equity marketplace, with a total capitalization of more than $6 trillion, more than five times that of all other U.S. stock markets combined.

The Company's common stock is currently traded on the Nasdaq National Market under the symbol RFSI.

RFS Hotel Investors, Inc. is a Memphis-based real estate investment trust (REIT) which owns 50 hotels comprising more than 7,000 rooms in 22 states.

CONTACT: Mimi Hall Communications, Inc., Memphis

Mimi Hall, 901/682-1360