La Quinta Announces Tax Treatment

La Quinta Properties, Inc., announced today that the dividends per
depositary share paid in 2003 on its 9% Series A Cumulative Redeemable
Preferred Stock will be treated as ordinary income for federal income tax
purposes. In 2003, La Quinta Properties, Inc. made cash distributions
equal to $2.25 per depositary share of preferred stock.

Registered holders of depositary shares of 9% Series A Cumulative
Redeemable Preferred Stock will receive an Internal Revenue Service Form
1099- DIV from American Stock Transfer, the Company`s dividend paying
agent. The form will report the gross dividends paid during 2003. If
shares were held in “street name” during 2003, the bank, brokerage firm or
other nominee that holds such shares will provide the IRS form.

About La Quinta Corporation
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Dallas based La Quinta Corporation and its controlled subsidiary La Quinta
Properties, Inc., a leading limited service lodging company, owns,
operates or franchises over 370 La Quinta Inns and La Quinta Inn & Suites
in 33 states. Today`s news release, as well as other information about La
Quinta, is available on the Internet at http://www.lq.com/ .

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