MEMPHIS, Tenn.--(BUSINESS WIRE)--May 30, 2002--RFS Hotel Investors, Inc. (NYSE:RFS) today announced an offering of 2.0 million shares of common stock resulting in net proceeds of approximately $24.7 million. The Company intends to use the proceeds of the offering, together with available cash, to repurchase all of the Company's Series B Preferred Stock for approximately $25.9 million. The Series B Preferred Stock currently pays an annual dividend at the rate of 12.5%.
Delivery of the shares is expected to occur on or about June 4, 2002. The underwriter for the offering is Morgan Keegan & Company, Inc. RFS Hotel Investors, Inc. (RFS) 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(R), Residence Inn by Marriott(R), Hilton(R), Doubletree(R), Holiday Inn(R), Hampton Inn(R), and Homewood Suites by Hilton(R). 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 can be found on the Company's website at www.rfshotel.com. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
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