<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF RFS HOTEL INVESTORS INC. FOR THE NINE MONTHS ENDED 
SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 
FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                          13,006
<SECURITIES>                                         0
<RECEIVABLES>                                   16,036
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0
<PP&E>                                         697,611
<DEPRECIATION>                                  53,059
<TOTAL-ASSETS>                                 690,346
<CURRENT-LIABILITIES>                           27,440
<BONDS>                                        271,879
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                     18,500
<COMMON>                                       353,055
<OTHER-SE>                                       (361)
<TOTAL-LIABILITY-AND-EQUITY>                   690,346
<SALES>                                              0
<TOTAL-REVENUES>                                35,283
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                                12,210
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               4,603
<INCOME-PRETAX>                                      0
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                             16,640
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                         0
<EPS-PRIMARY>                                    $0.65
<EPS-DILUTED>                                     0.64