EXHIBIT 99.1

RFS TO ISSUE $125 MILLION OF SENIOR NOTES

Memphis, Tennessee, February 7, 2002 - RFS Hotel Investors, Inc ("RFS") (NYSE:
RFS) today announced that its operating partnership, RFS Partnership, L.P. (the
"Partnership"), intends to offer $125 million of senior notes. The notes will be
unconditionally guaranteed by RFS and certain of its subsidiaries. RFS and the
Partnership intend to use the proceeds of the proposed offering primarily to
repay certain secured indebtedness of RFS and the Partnership and to reduce
borrowings outstanding under RFS's line of credit.

Subject to market conditions, the company expects to complete the notes offering
during February 2002. The notes have not been registered under the Securities
Act of 1933 (the "Securities Act") and may not be offered or sold in the United
States absent registration under the Securities Act or under an applicable
exemption from the registration thereunder. The notes will be privately placed
pursuant to Rule 144A and Regulation S under the Securities Act of 1933.
Pursuant to a registration rights agreement, the notes are expected to be
registered at a later date.

This news release is not an offer to sell or a solicitation of an offer to buy
the notes referred to above, and they will not be sold in any state or
jurisdiction in which an offer, solicitation or sale would be unlawful under the
securities laws of that state or jurisdiction. The offering will be made under
Rule 144A only to qualified institutional investors and to certain persons in
offshore transactions in reliance on Regulation S.

This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, that involve a number of risks and
uncertainties. In particular, RFS's completion of the offering of unsecured
fixed-rate debt is subject to various risks, including prevailing conditions in
the public capital markets. There can be no assurance that the offering will be
successfully completed. Other potential risks that could cause actual events to
differ materially are included in filings with the Securities and Exchange
Commission filings, including Forms 8-K, 10-K, 10-Q, S-3 and S-4 for RFS and the
Partnership. RFS and the Partnership disclaim any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.