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                                                                    EXHIBIT 99.1


                                  PRESS RELEASE

RFS HOTEL INVESTORS AND EQUITY INNS CANCEL MERGER PLANS


Memphis, TN, September 8, 1998 - RFS Hotel Investors, Inc. (NYSE:RFS) and Equity
Inns, Inc. (NYSE:ENN) today announced that their respective Boards of Directors
have terminated the Merger Agreement between the two companies. The companies
announced in April an agreement, subject to the approval of shareholders, under
which RFS would merge into Equity Inns in the exchange of 1.5 shares of ENN
common stock for each share of RFS common stock, plus assumption of all RFS
liabilities. The Agreement was predicated on ENN stock maintaining a price not
below $14 per share during a "measurement period." The most recent closing price
of ENN stock was approximately $10.50 per share.

RFS chairman, Robert M. Solmson, said, "At the time the merger was announced, we
felt this transaction added significantly to the value of our shareholders'
investment. However, market conditions have changed substantially since then,
and we believe that, in light of those changes, the transaction is no longer in
the best interest of our shareholders. We continue to have the highest regard
for Phil McNeill and the management team at Equity Inns, and we wish them
continued success," Solmson said.

William Lovelace, RFS Executive Vice President, said that the Company would
continue to be more conservative toward acquisitions than many other REITs, an
approach it adopted in the past year. "Our emphasis has been, and continues to
be, to maintain modest leverage, acquire hotels only where we reasonably expect
to receive a cash return greater than our cost of capital, and focus on markets,
like California, that have significant barriers to entry," said Lovelace. "We
are in the fortunate position of having a portfolio that is yielding a very high
current return. Additionally, our portfolio is diversified geographically, by
market segment, and by brand, which will, long-term, serve to minimize
volatility and risk."

Solmson stated, "REITs have, in recent months, lost a substantial portion of
their market value. In part, this is a result of investors' previous
misconception that REIT growth would continue unabated by having continuous
access to the capital markets. However, as REIT stock prices have declined, it
may be increasingly difficult for many REITs to attain their earnings estimates
because of an inability to make accretive acquisitions. We see this environment
as very favorable for a conservative company like our own. We have been
especially cautious in our use of debt, and we plan to re-emphasize our mission
of providing an attractive opportunity for investors who want to own real
estate, maintain liquidity and benefit from a high dividend yield."

RFS Hotel Investors, Inc. is a Memphis-based real estate trust (REIT) that owns
a diversified portfolio of 65 full-service, extended stay and premium
limited-service hotels comprising approximately 9,400 rooms in 24 states.

Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws. Actual results and
the timing of certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of factors
including general economic conditions, competitive factors, interest rates and
the other risks inherent in the real estate business. For further information on
factors which could impact the Company and the statements contained herein,
reference is made to the filings of Equity Inns, Inc. and RFS Hotel Investors,
Inc. with the Securities and Exchange Commission, including quarterly reports on
Form 10Q, reports on Form 8-K and annual reports on Form 10-K, including factors
described in the Form 10-K for the fiscal year ended December 31, 1997 filed by
Equity Inns, Inc. and RFS Hotel Investors, Inc.