La Quinta Announces Fourth Quarter RevPAR

La Quinta Corporation today announced that total company RevPAR increased
approximately 10% for the fourth quarter of 2003 versus the same period in
the prior year. On October 30, 2003, La Quinta disclosed total company
RevPAR expectations of a 4% increase for fourth quarter 2003. La Quinta
also disclosed Adjusted EBITDA guidance of $25 million, and La Quinta now
believes Adjusted EBITDA will exceed $25 million for the fourth quarter of
2003. La Quinta also previously issued guidance for a net loss of $17
million for the fourth quarter of 2003, and now believes the fourth
quarter net loss will likely be less than a net loss of $17 million.

“Our RevPAR results were driven by a significant increase in occupancy
during the quarter, partially offset by lower average rates,” commented
Francis W. (“Butch”) Cash, President and Chief Executive Officer. “Our
RevPAR results for the quarter make it clear that our revenue initiatives
are working, particularly electronic distribution, which was the primary
driver for our RevPAR increase. I`m very proud of the progress we have
made that is enabling us to beat the competition. La Quinta`s enhanced
sales team, best- in-class Returns(R) program and completed renovations
program are creating more loyal customers who are staying with us more
La Quinta also announced that it added 14 franchise properties (1,267
rooms) during the fourth quarter for a total of 96 franchised properties
(8,702 rooms) open at the end of 2003. Further, the Company believes that
the franchise pipeline for 2004 is very healthy with executed contracts
for over 50 properties (4,000 rooms). The majority of the pipeline is new
construction properties that are expected to open during 2004.

In the fourth quarter, La Quinta sold four company owned hotels for gross
proceeds of approximately $10 million. During the full year 2003, La
Quinta sold a total of eight hotels for gross proceeds of approximately
$20 million. These eight hotels contributed approximately $6 million in
revenues during 2003. La Quinta also completed the sale of its
non-strategic business, TeleMatrix, in December 2003, and received cash
proceeds of $6 million. The impact of the TeleMatrix sale is not expected
to be material to La Quinta`s operating results.

At December 31, 2003, La Quinta had over $325 million in cash and no
borrowings under its new $150 million credit facility (other than $20
million in letters of credit).

La Quinta announced updated preliminary guidance for 2004 of total company
RevPAR increase of 5%, Adjusted EBITDA of $165 million, net loss of $51
million and capital expenditures of $65 million, which includes $20
million related to the redevelopment project in San Antonio. The net loss
includes pretax losses of $27 million on early retirement of debt. A
schedule reconciling net loss to Adjusted EBITDA is included in this press
release. La Quinta currently expects its 2004 RevPAR growth to be higher
in the first half of the year than in the second half of 2004. RevPAR
growth in the first half of 2004 is likely to be driven by continued
occupancy gains partially offset by lower average rates. La Quinta
management will discuss its 2004 guidance further when the Company
announces fourth quarter and full year 2003 financial results, which it
currently expects will be on Thursday, February 26, 2004. Details
regarding the earnings release conference call and webcast will be
announced in mid-February.
Dallas based La Quinta Corporation, a limited service lodging company,
owns, operates or franchises over 370 La Quinta Inns and La Quinta Inn &
Suites in 33 states.