La Quinta 8-K La Quinta Holdings Inc. Reports Strong Third Quarter 2014 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

LA QUINTA HOLDINGS INC. REPORTS STRONG THIRD QUARTER 2014 RESULTS

• Generated RevPAR Growth of 8.9%

• Achieved Pro forma Adjusted EBITDA Growth of 13.6%

• Increases Full Year 2014 Guidance

IRVING, Texas (October 22, 2014) – La Quinta Holdings Inc. (NYSE: LQ) today reported its third quarter 2014 results on a pro forma basis, giving effect to La Quinta’s initial public offering (IPO) and the related transactions as described below, as well as the results of operations for the third quarter 2014 on a historical basis.

Third Quarter 2014 Highlights:

• Pro forma total Adjusted EBITDA increased 13.6 percent to $109.3 million, and Pro forma Adjusted EBITDA margin increased 130 basis points

• Pro forma net income increased 17.9 percent to $21.0 million; historical net income was $12.8 million

• Pro forma earnings per share increased to $0.16; historical earnings per share was $0.10

• System-wide comparable RevPAR increased 8.9 percent, ADR increased 4.6 percent and occupancy increased 282 basis points

• Pro forma Franchise and Management Segment Adjusted EBITDA increased 12.4 percent to $29.1 million

• Grew existing franchise base by 8% over the last twelve months with minimal capital investment. Increased franchise pipeline to 196 hotels, including over 16,000 additional rooms.

• Opened 500th franchise property, bringing total system room count to over 85,000

• Maintained commitment to balance sheet de-levering strategy by voluntarily paying down an additional $75 million of long-term debt with free cash flow. Year to date voluntary debt pay downs total $155 million.

• Raises full year 2014 guidance

Overview

Wayne B. Goldberg, President & Chief Executive Officer of La Quinta, said, “Our third quarter results demonstrate another quarter of solid performance delivered across our key metrics, including strong RevPAR, franchise unit, and EBITDA growth, and EBITDA margin expansion. Overall, the lodging industry remains healthy, with a steadily improving economy and strong transient travel demand. La Quinta is extremely well-positioned to continue to capture this demand as we capitalize on our refreshed and upgraded portfolio and our repositioned brand. Over the last twelve months, we have grown our franchise base 8% and, in the third quarter, opened our 500^th franchise property. This unit growth, along with our increased occupancy, allows our geographic reach and customer base to continue to grow. Franchise interest in the La Quinta brand remains robust and our ongoing system growth is further supported by a continued strong pipeline. Furthermore, we have continued to de-lever our balance sheet and we remain focused on our strategic objectives, all of which are designed to increase shareholder value.”

1

The results of operations for the Company, on a pro forma basis and on a historical basis, for the three months ended September 30, 2014 include the following highlights⁽¹⁾($ in thousands, except per share amounts):

	Pro Forma									Historical
	Three Months Ended September 30,									Three Months Ended September 30,
	2014			2013			% chg			2014			2013			% chg
Total Revenue	$	271,118		$	246,488			10.0	%	$	271,118		$	238,035			13.9	%
Franchise and Management Segment Adj. EBITDA		29,054			25,859			12.4	%		29,054			15,233			NM	(2)
Owned Hotels Segment Adj. EBITDA		87,951			76,565			14.9	%		87,951			88,997			NM	(2)
Total Adj. EBITDA		109,297			96,238			13.6	%		109,297			93,747			16.6	%
Total Adj. EBITDA margin		40.3	%		39.0	%					40.3	%		39.4	%
Operating Income Margin		22.0	%		21.7	%					20.0	%		21.7	%
Net Income attributable to La Quinta Holdings’ stockholders		20,997			17,812			17.9	%		12,817			22,570			(43.2	)%
Earnings per share – basic and diluted		0.16			0.15			6.6	%		0.10			0.19			(47.4	)%
Adjusted Net Income											18,237			22,570			(19.2	)%

⁽¹⁾  Please see the schedules to this press release for an explanation of the basis of the pro forma presentation and reconciliation of the pro forma financial information and adjusted results of operations. Pro forma information excludes adjustments that are not expected to have a continuing effect on the company, and adjusted information is adjusted for certain special items, in each case as discussed in the schedules attached to this press release. Pro Forma Segment Adjusted EBITDA reflects intercompany fees charged to our owned hotels under new agreements entered into at the time of the IPO as if these fees had been in place for all periods presented.

⁽²⁾  Changes in terms of percentage is not meaningful

Comparable hotel statistics	Three months ended September 30, 2014			Variance 2014 vs. 2013
Owned Hotels
Occupancy		70.9	%		306 bps
ADR	$	80.04			4.5	%
RevPAR	$	56.78			9.2	%
Franchised Hotels
Occupancy		72.6	%		252 bps
ADR	$	93.25			4.9	%
RevPAR	$	67.67			8.7	%
System-wide
Occupancy		71.7	%		282 bps
ADR	$	85.91			4.6	%
RevPAR	$	61.56			8.9	%

Development

Over the last twelve months, the Company has grown its franchise base 8% and, in the third quarter, opened its 500^th franchise property. During the third quarter, the Company opened 7 franchised hotels with over 600 rooms and achieved net system-wide growth of 6 hotels with approximately 500 rooms. The Company has opened 31 franchised hotels with approximately 3,000 rooms through September 30, 2014 and, consistent with a recent history of over 40% of annual franchise hotel openings occurring in the fourth quarter, remains on track to open 45 to 50 hotels in 2014. As of September 30, 2014, the Company had a pipeline of 196 franchised hotels totaling over 16,000 rooms, to be located in the United States, Mexico, Canada, Colombia, Honduras, Nicaragua, and Guatemala.

The Company’s system-wide portfolio, as of September 30, 2014, consisted of 854 hotels representing approximately 85,500 rooms located predominantly across 47 U.S. states, as well as in Canada and Mexico. This portfolio includes 353 owned and operated hotels and 501 franchised hotels.

2

	September 30, 2014				September 30, 2013
	# of hotels		# of rooms		# of hotels		# of rooms
Owned(1)		352		44,800		355		45,200
Joint Venture		1		200		1		200
Previously Managed Hotels(2)		—		—		14		1,700
Franchised		501		40,500		466		37,300
Totals		854		85,500		836		84,400

⁽¹⁾  For September 30, 2013, Owned hotels includes 17 hotels designated as assets held for sale, all of which have been sold as of September 30, 2014.

⁽²⁾  At the time of the IPO, April 14, 2014, we acquired the Previously Managed Hotels; as such they are included in Owned hotels as of September 30, 2014.

Balance Sheet and Liquidity

During the quarter, the Company made a voluntary prepayment of $75.0 million on its senior secured term loan facility, for a total of $155.0 million of voluntary prepayments in 2014. As of September 30, 2014, the Company had approximately $1.9 billion of outstanding indebtedness with a weighted average interest rate of approximately 4.5%, including the impact of an interest rate swap. Total cash and cash equivalents was $108.5 million as of September 30, 2014.

Outlook

Based upon management’s current estimates, the Company is increasing its guidance for full year 2014 and is expecting:

	Updated Guidance	Prior Guidance
RevPAR growth on a system-wide comparable hotel basis	7.0 percent to 7.5 percent	6.0 percent to 7.0 percent
Pro forma Adjusted EBITDA	$370 million to $375 million	$367 million to $372 million
Capital expenditures	$75 million to $79 million	$71 million to $77 million
Franchise hotel openings	45 to 50	45 to 50

Webcast and Conference Call

La Quinta Holdings Inc. will host a conference call to discuss third quarter 2014 results on Wednesday, October 22, 2014 at 5:00 p.m. Eastern Time. Participants may listen to the live webcast by dialing (877) 407-3982, or (201) 493-6780 for international participants, or by logging onto the La Quinta Investor Relations website atwww.lq.com/investorrelations. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time.

A replay of the call will be available from approximately 8 p.m. Eastern Time on October 22, 2014 through midnight Eastern Time on November 5, 2014. To access the replay, the domestic dial-in number is (877) 870-5176, the international dial-in number is (858) 384-5517, and the passcode is 13591706. The archive of the webcast will be available on the Company’s website for a limited time.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements, including the statements in the “Outlook” section of this press release. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in our prospectus dated April 8, 2014, filed with the Securities and Exchange Commission (“SEC”) pursuant to Rule 424(b) of the Securities Act on April 9, 2014, as such factors may be updated from time to

3

time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Non-GAAP Financial Measures

We refer to certain non-GAAP financial measures in this press release including Adjusted EBITDA, Adjusted EBITDA margins, Segment Adjusted EBITDA, Adjusted Net Income, and Adjusted Earnings Per Share. Please see the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures.

4

About La Quinta Holdings Inc.

La Quinta Holdings Inc. (LQ) is a leading owner, operator and franchisor of select-service hotels primarily serving the upper-midscale and midscale segments. The Company’s owned and franchised portfolio consists of more than 850 La Quinta Inn & Suites™ and La Quinta Inn™ branded hotels representing more than 85,000 rooms located in 47 states, as well as Canada and Mexico. La Quinta’s team is committed to providing guests with a refreshing and engaging experience. For more information, please visit:www.LQ.com.

Contacts:

Investor Relations

214-492-6896

investor.relations@laquinta.com

Media:

Phil Denning & Jason Chudoba

203-682-8200

Phil.Denning@icrinc.com

Jason.Chudoba@icrinc.com

5

LA QUINTA HOLDINGS INC.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

	Page
Unaudited Historical Statements of Operations of La Quinta Holdings Inc.		7
Reconciliations		8
Pro Forma Financial Information and Net Income		9
Pro forma and Historical Adjusted EBITDA Non-GAAP		11
Pro Forma and Historical Segment Revenues and Adjusted EBITDA		13
Pro Forma Adjusted EBITDA Non-GAAP – Outlook: Forecasted 2014		15
Net Income and Earnings Per Share Pro Forma and Adjusted Non-GAAP		16
Definitions		17

6

LA QUINTA HOLDINGS INC.

HISTORICAL STATEMENTS OF OPERATIONS

(unaudited, in thousands)

	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Revenues:
Room revenues	$	234,658		$	205,741		$	649,181		$	585,294
Franchise and other fee-based revenues		25,224			22,226			68,215			59,846
Other hotel revenues		5,078			4,657			14,809			13,650
		264,960			232,624			732,205			658,790
Brand marketing fund revenues from franchise and managed properties		6,158			5,411			16,511			14,594
Total revenues		271,118			238,035			748,716			673,384
Operating expenses:
Direct lodging expenses		101,076			91,567			285,430			264,208
Depreciation and amortization		45,086			41,484			129,948			122,694
General and administrative expenses		32,251			12,989			100,863			49,724
Other lodging and operating expenses		15,589			13,346			46,124			39,666
Marketing, promotional and other advertising expenses		16,639			21,560			50,170			54,226
Impairment loss		—			—			5,157			—
		210,641			180,946			617,692			530,518
Brand marketing fund expenses from franchise and managed properties		6,158			5,411			16,511			14,594
Total operating expenses		216,799			186,357			634,203			545,112
Operating income		54,319			51,678			114,513			128,272
Other income (expenses):
Interest expense, net		(24,495	)		(38,228	)		(97,260	)		(110,746	)
Loss on extinguishment of debt, net		—			—			(2,030	)		—
Other income (loss)		(795	)		591			(1,096	)		1,057
Total other income (expenses)		(25,290	)		(37,637	)		(100,386	)		(109,689	)
Income from continuing operations before income taxes		29,029			14,041			14,127			18,583
Income tax provision		(16,162	)		(1,006	)		(21,860	)		(2,526	)
Recognition of net deferred tax liabilities upon C-corporation conversion		—			—			(321,054	)		—
Net Income (Loss) from continuing operations, net of tax		12,867			13,035			(328,787	)		16,057
Income (Loss) on discontinued operations, net of tax		—			9,941			(503	)		(6,303	)
Net income (loss)		12,867			22,976			(329,290	)		9,754
Income from noncontrolling interests in continuing operations, net of tax		(50	)		(406	)		(3,814	)		(1,106	)
Income from noncontrolling interests in discontinued operations, net of tax		—			—			—			—
Net income attributable to noncontrolling interests		(50	)		(406	)		(3,814	)		(1,106	)
Amounts attributable to La Quinta Holdings’ stockholders
Income (loss) from continuing operations, net of tax		12,817			12,629			(332,601	)		14,951
Income (loss) from discontinued operations, net of tax		—			9,941			(503	)		(6,303	)
Net income (loss) attributable to La Quinta Holdings’ stockholders	$	12,817		$	22,570		$	(333,104	)	$	8,648

7

RECONCILIATIONS

Prior to the IPO, the Company’s business was conducted, and the Company’s hotel properties were owned, through multiple entities including (i) the “La Quinta Predecessor Entities” which were entities under common control or otherwise consolidated for financial reporting purposes, and their consolidated subsidiaries and (ii) entities that owned 14 hotels (the “Previously Managed Portfolio”) managed by the La Quinta Predecessor Entities. In connection with the IPO, among other transactions, (i) the La Quinta Predecessor Entities were contributed to the Company, (ii) the La Quinta Predecessor Entities purchased the Previously Managed Portfolio, and (iii) the Company effected the refinancing transactions described below (together with the IPO, the “IPO Transactions”).

The unaudited pro forma financial data for the three-month and nine month periods ended September 30, 2014 and 2013 are presented as if the IPO Transactions all had occurred on January 1, 2013 for the purposes of the unaudited pro forma combined statements of operations. The unaudited pro forma combined financial information excludes adjustments that are not expected to have a continuing effect on the Company. Excluded adjustments include the initial income tax impact of the La Quinta Predecessor Entities and the Previously Managed Portfolio being owned by a “C” corporation, gains and losses related to the debt financing transactions, and the impact of the issuance of vested and unvested restricted stock at the time of the IPO related to long term incentives, as well as the impact of discontinued operations. Accordingly, the unaudited pro forma financial data is not necessarily indicative of our financial position or results of operations had the transactions described above for which we are giving pro forma effect actually occurred on the dates indicated.

The tables below provide a reconciliation of the pro forma financial information, including segment information, for the Company to the Company’s historical information, a reconciliation of Adjusted EBITDA to Net Income, both on a pro forma and historical basis, and a reconciliation of Adjusted Net Income and Adjusted Earnings Per Share to Net Income and Earnings Per Share. We believe this financial information provides meaningful supplemental information because it reflects the combined business of the La Quinta Predecessor Entities and the Previously Managed Portfolio and the ongoing effects of the other IPO Transactions. We further believe the presentation of Adjusted Net Income and Adjusted Earnings Per Share provides meaningful information because it excludes the impact of certain items that are not expected to have an ongoing effect on our operations. This represents how management views the business and reviews our operating performance. It is also used by management when publicly providing the business outlook. See the definitions of “EBITDA”, “Adjusted EBITDA”, “Adjusted Net Income” and “Adjusted Earnings Per Share” for a further explanation of the use of these measures.

8

PRO FORMA FINANCIAL INFORMATION AND NET INCOME RECONCILIATION

(unaudited, in thousands)

	Three months ended September 30, 2014									Three months ended September 30, 2013
	Historical			Adjustments			Pro Forma			Historical			Adjustments			Pro Forma
Revenues:
Room revenues	$	234,658		$	—		$	234,658		$	205,741		$	9,112		$	214,853
Franchise and other fee-based revenues		25,224			—			25,224			22,226			(547	)		21,679
Other hotel revenues		5,078			—			5,078			4,657			116			4,773
		264,960			—			264,960			232,624			8,681			241,305
Brand marketing fund revenues from franchise and managed properties		6,158			—			6,158			5,411			(228	)		5,183
Total revenues		271,118			—			271,118			238,035			8,453			246,488
Operating expenses:
Direct lodging expenses		101,076			—			101,076			91,567			5,002			96,569
Depreciation and amortization		45,086			(31	)		45,055			41,484			1,549			43,033
General and administrative expenses		32,251			(5,393	)		26,858			12,989			(143	)		12,846
Other lodging and operating expenses		15,589			—			15,589			13,346			423			13,769
Marketing, promotional and other advertising expenses		16,639			—			16,639			21,560			—			21,560
		210,641			(5,424	)		205,217			180,946			6,831			187,777
Brand marketing fund expenses from franchise and managed properties		6,158			—			6,158			5,411			(228	)		5,183
Total operating expenses		216,799			(5,424	)		211,375			186,357			6,603			192,960
Operating income		54,319			5,424			59,743			51,678			1,850			53,528
Other income (expenses):
Interest expense, net		(24,495	)		625			(23,870	)		(38,228	)		13,848			(24,380	)
Other income (loss)		(795	)		—			(795	)		591			—			591
Total other income (expenses)		(25,290	)		625			(24,665	)		(37,637	)		13,848			(23,789	)
Income from continuing operations before income taxes		29,029			6,049			35,078			14,041			15,698			29,739
Income tax provision		(16,162	)		2,131			(14,031	)		(1,006	)		(10,889	)		(11,895	)
Income from continuing operations, net of tax		12,867			8,180			21,047			13,035			4,809			17,844
Net income(1)		12,867			8,180			21,047			13,035			4,809			17,844
Income from noncontrolling interests in continuing operations, net of tax		(50	)		—			(50	)		(406	)		374			(32	)
Net income attributable to noncontrolling interests(1)		(50	)		—			(50	)		(406	)		374			(32	)
Amounts attributable to La Quinta Holdings’ stockholders
Income from continuing operations, net of tax		12,817			8,180			20,997			12,629			5,183			17,812
Net income attributable to La Quinta Holdings’ stockholders(1)	$	12,817		$	8,180		$	20,997		$	12,629		$	5,183		$	17,812

⁽¹⁾  Excludes the impact of the Company’s discontinued operations on a historical and pro forma basis for the periods presented

9

PRO FORMA FINANCIAL INFORMATION AND NET INCOME RECONCILIATION

(unaudited, in thousands)

	Nine months ended September 30, 2014									Nine months ended September 30, 2013
	Historical			Adjustments			Pro Forma			Historical			Adjustments			Pro Forma
Revenues:
Room revenues	$	649,181		$	12,814		$	661,995		$	585,294		$	29,151		$	614,445
Franchise and other fee-based revenues		68,215			(732	)		67,483			59,846			(1,738	)		58,108
Other hotel revenues		14,809			159			14,968			13,650			349			13,999
		732,205			12,241			744,446			658,790			27,762			686,552
Brand marketing fund revenues from franchise and managed properties		16,511			(321	)		16,190			14,594			(729	)		13,865
Total revenues		748,716			11,920			760,636			673,384			27,033			700,417
Operating expenses:
Direct lodging expenses		285,430			5,832			291,262			264,208			14,884			279,092
Depreciation and amortization		129,948			1,573			131,521			122,694			4,812			127,506
General and administrative expenses		100,863			(31,617	)		69,246			49,724			(94	)		49,630
Other lodging and operating expenses		46,124			944			47,068			39,666			2,084			41,750
Marketing, promotional and other advertising expenses		50,170			—			50,170			54,226			—			54,226
Impairment loss		5,157			—			5,157			—			—			—
		617,692			(23,268	)		594,424			530,518			21,686			552,204
Brand marketing fund expenses from franchise and managed properties		16,511			(321	)		16,190			14,594			(729	)		13,865
Total operating expenses		634,203			(23,589	)		610,614			545,112			20,957			566,069
Operating income		114,513			35,509			150,022			128,272			6,076			134,348
Other income (expenses):
Interest expense, net		(97,260	)		25,768			(71,492	)		(110,746	)		36,845			(73,901	)
Loss on extinguishment of debt, net		(2,030	)		2,030			—			—			—			—
Other income (loss)		(1,096	)		—			(1,096	)		1,057			—			1,057
Total other income (expenses)		(100,386	)		27,798			(72,588	)		(109,689	)		36,845			(72,844	)
Income from continuing operations before income taxes		14,127			63,307			77,434			18,583			42,921			61,504
Income tax provision		(21,860	)		(9,113	)		(30,973	)		(2,526	)		(22,076	)		(24,602	)
Recognition of net deferred tax liabilities uponC-corporation conversion		(321,054	)		321,054			—			—			—			—
Income (loss) from continuing operations, net of tax		(328,787	)		375,248			46,461			16,057			20,845			36,902
Net income (loss) (1)		(328,787	)		375,248			46,461			16,057			20,845			36,902
Income from noncontrolling interests in continuing operations, net of tax		(3,814	)		3,489			(325	)		(1,106	)		803			(303	)
Net income attributable to noncontrolling interests (1)		(3,814	)		3,489			(325	)		(1,106	)		803			(303	)
Amounts attributable to La Quinta Holdings’ stockholders
Income (loss) from continuing operations, net of tax		(332,601	)		378,737			46,136			14,951			21,648			36,599
Net income (loss) attributable to La Quinta Holdings’ stockholders(1)	$	(332,601	)	$	378,737		$	46,136		$	14,951		$	21,648		$	36,599

⁽¹⁾  Excludes the impact of the Company’s discontinued operations on a historical and pro forma basis for the periods presented

10

PRO FORMA AND HISTORICAL ADJUSTED EBITDA NON-GAAP RECONCILIATION

(unaudited, in thousands)

	Pro forma						Historical
	Three months ended September 30, 2014			Three months ended September 30, 2013			Three months ended September 30, 2014			Three months ended September 30, 2013
Operating income	$	59,743		$	53,528		$	54,319		$	51,678
Interest expense, net		(23,870	)		(24,380	)		(24,495	)		(38,228	)
Other income (loss)		(795	)		591			(795	)		591
Income tax provision		(14,031	)		(11,895	)		(16,162	)		(1,006	)
Income from noncontrolling interest		(50	)		(32	)		(50	)		(406	)
Income on discontinued operations, net of tax		—			—			—			9,941
Net Income (Loss) Attributable to La Quinta Holdings’ stockholders		20,997			17,812			12,817			22,570
Interest expense		23,875			24,438			24,500			38,290
Income tax provision		14,031			11,895			16,162			969
Depreciation and amortization		45,321			43,357			45,352			41,796
Non-controlling interest		50			32			50			406
EBITDA		104,274			97,534			98,881			104,031
Income from discontinued operations		—			—			—			(1,533	)
Gain on sale from discontinued operations		—			—			—			(7,694	)
(Gain) loss on retirement of assets		—			—			—			(4	)
Gain related to casualty disasters		(108	)		(506	)		(108	)		(739	)
Equity based compensation		3,207			—			8,600			—
Other (gains) losses, net		1,924			(790	)		1,924			(314	)
Adjusted EBITDA	$	109,297		$	96,238		$	109,297		$	93,747

11

PRO FORMA AND HISTORICAL ADJUSTED EBITDA NON-GAAP RECONCILIATION

(unaudited, in thousands)

	Pro forma						Historical
	Nine months ended September 30, 2014			Nine months ended September 30, 2013			Nine months ended September 30, 2014			Nine months ended September 30, 2013
Operating income	$	150,022		$	134,348		$	114,513		$	128,272
Interest expense, net		(71,492	)		(73,901	)		(97,260	)		(110,746	)
Other income (loss)		(1,096	)		1,057			(1,096	)		1,057
Loss on extinguishment of debt, net		—			—			(2,030	)		—
Income tax provision		(30,973	)		(24,602	)		(21,860	)		(2,526	)
Recognition of net deferred tax liabilities upon C-corporation conversion		—			—			(321,054	)		—
Income from noncontrolling interest		(325	)		(303	)		(3,814	)		(1,106	)
Loss on discontinued operations, net of tax		—			—			(503	)		(6,303	)
Net Income (Loss) Attributable to La Quinta Holdings’ stockholders		46,136			36,599			(333,104	)		8,648
Interest expense		71,532			74,059			97,300			110,908
Income tax provision		30,973			24,602			21,860			2,573
Recognition of net deferred tax liabilities upon C-corporation conversion		—			—			321,054			—
Depreciation and amortization		132,288			128,489			130,711			128,711
Non-controlling interest		325			303			3,814			1,106
EBITDA		281,254			264,052			241,635			251,946
Fixed asset impairment loss		5,157			—			5,308			19,913
(Income) loss from discontinued operations		—			—			377			(8,420	)
Gain on sale from discontinued operations		—			—			—			(7,694	)
Loss on retirement of assets		—			51			—			47
Gain related to casualty disasters		(1,098	)		(1,524	)		(1,106	)		(2,611	)
Loss on extinguishment of debt, net		—			—			2,030			—
Equity based compensation		8,036			—			39,703			—
Other (gains) losses, net		2,570			849			2,312			3,034
Adjusted EBITDA	$	295,919		$	263,428		$	290,259		$	256,215

12

PRO FORMA AND HISTORICAL SEGMENT REVENUES AND ADJUSTED EBITDA RECONCILIATION

(unaudited, in thousands)

	Three months ended September 30, 2014								Three months ended September 30, 2013
	Historical			Adjustments		Pro Forma			Historical			Adjustments (1)			Pro Forma
Revenues:
Owned hotels	$	241,266		$	—	$	241,266		$	211,569		$	8,057		$	219,626
Franchise and management		29,054			—		29,054			15,233			10,626			25,859
Segment revenues		270,320			—		270,320			226,802			18,683			245,485
Other fee-based revenues from franchise and managed properties		6,158			—		6,158			5,411			(228	)		5,183
Corporate and other		34,026			—		34,026			26,733			4,297			31,030
Intersegment elimination		(39,386	)		—		(39,386	)		(20,911	)		(14,299	)		(35,210	)
Total revenues	$	271,118		$	—	$	271,118		$	238,035		$	8,453		$	246,488
Adjusted EBITDA:
Owned hotels	$	87,951		$	—	$	87,951		$	88,997		$	(12,432	)	$	76,565
Franchise and management		29,054			—		29,054			15,233			10,626			25,859
Segment Adjusted EBITDA		117,005			—		117,005			104,230			(1,806	)		102,424
Corporate and other		(7,708	)		—		(7,708	)		(10,483	)		4,297			(6,186	)
Total Adjusted EBITDA	$	109,297		$	—	$	109,297		$	93,747		$	2,491		$	96,238

⁽¹⁾  Adjustments include (i) reflection of the results of operations of the 14 previously managed hotels which were acquired in connection with the IPO as if the acquisition had occurred on January 1, 2013; and (ii) reflection of franchise and management fees that we charge our owned hotels as if the rates put in place pursuant to new agreements dated April 14, 2014 had been in effect beginning on January 1, 2013. On a historical basis, prior to April 14, 2014, we charged aggregate fees of 2.0% (0.33% license fees for trademark rights and 1.67% management fee for management services) to our owned hotels. Effective April 14, 2014, we terminated the existing franchise and management agreements with our owned hotels and entered into new agreements, which provide for a franchise fee of 4.5% of gross room revenues and a management fee of 2.5% of total hotel revenues, which are reflected as revenue in the franchise and management segment. The agreements we entered into with our owned hotels upon effectiveness of the IPO also include a reservations fee of 2.0% of gross room revenues, which is reflected as revenue in corporate and other after April 14, 2014.

13

PRO FORMA AND HISTORICAL SEGMENT REVENUES AND ADJUSTED EBITDA RECONCILIATION

(unaudited, in thousands)

	Nine months ended September 30, 2014									Nine months ended September 30, 2013
	Historical			Adjustments (1)			Pro Forma			Historical			Adjustments (1)			Pro Forma
Revenues:
Owned hotels	$	667,564		$	10,929		$	678,493		$	601,504		$	26,940		$	628,444
Franchise and management		68,977			11,729			80,706			42,232			30,146			72,378
Segment revenues		736,541			22,658			759,199			643,736			57,086			700,822
Other fee-based revenues from franchise and managed properties		16,511			(321	)		16,190			14,594			(729	)		13,865
Corporate and other		88,054			4,633			92,687			74,424			12,289			86,713
Intersegment elimination		(92,390	)		(15,050	)		(107,440	)		(59,370	)		(41,613	)		(100,983	)
Total revenues	$	748,716		$	11,920		$	760,636		$	673,384		$	27,033		$	700,417
Adjusted EBITDA:
Owned hotels	$	249,226		$	(10,702	)	$	238,524		$	246,171		$	(35,222	)	$	210,949
Franchise and management		68,977			11,729			80,706			42,232			30,146			72,378
Segment Adjusted EBITDA		318,203			1,027			319,230			288,403			(5,076	)		283,327
Corporate and other		(27,944	)		4,633			(23,311	)		(32,188	)		12,289			(19,899	)
Total Adjusted EBITDA	$	290,259		$	5,660		$	295,919		$	256,215		$	7,213		$	263,428

⁽¹⁾  Adjustments include (i) reflection of the results of operations of the 14 previously managed hotels which were acquired in connection with the IPO as if the acquisition had occurred on January 1, 2013; and (ii) reflection of franchise and management fees that we charge our owned hotels as if the rates put in place pursuant to new agreements dated April 14, 2014 had been in effect beginning on January 1, 2013. On a historical basis, prior to April 14, 2014 we charged aggregate fees of 2.0% (0.33% license fees for trademark rights and 1.67% management fee for management services) to our owned hotels. Effective April 14, 2014, we terminated the existing franchise and management agreements with our owned hotels and entered into new agreements, which provide for a franchise fee of 4.5% of gross room revenues and a management fee of 2.5% of total hotel revenues, which are reflected as revenue in the franchise and management segment. The agreements we entered into with our owned hotels upon effectiveness of the IPO also include a reservations fee of 2.0% of gross room revenues, which is reflected as revenue in corporate and other after April 14, 2014.

14

PRO FORMA ADJUSTED EBITDA NON-GAAP RECONCILIATION

OUTLOOK: FORECASTED 2014

(unaudited, in thousands)

	Year Ended December 31, 2014
	Low Case			High Case
Net income Attributable to La Quinta Holdings’ stockholders(1)	$	50,551		$	53,551
Interest expense(2)		96,503			96,503
Income tax provision		33,988			35,988
Depreciation and amortization		174,515			174,515
Non-controlling interest		420			420
EBITDA		355.977			360,977
Fixed asset impairment loss		5,157			5,157
Share based compensation expense(3)		11,071			11,071
Other (gains) losses, net		(2,205	)		(2,205	)
Adjusted EBITDA	$	370,000		$	375,000

⁽¹⁾  This table provides a reconciliation of forward-looking forecasted Adjusted EBITDA to net income attributable to La Quinta Holdings’ stockholders before adjustments which include (i) one-time net tax expense, which reflects the establishment of a net deferred tax liability associated with the La Quinta Predecessor Entities becoming owned by La Quinta Holdings Inc., a “C” corporation for income tax purposes, (ii) certain of our share based compensation which reflects the exchange of ownership units that were outstanding under our long-term cash incentive plan at the time of our IPO for shares of La Quinta Holdings Inc. common stock, 80% of which vest within one year of the IPO, and (iii) loss on extinguishment of the historical debt that was refinanced on April 14, 2014.

⁽²⁾  Includes interest expense for $1.9 billion of outstanding indebtedness with a weighted average interest rate of approximately 4.5%, including the impact of an interest rate swap.

⁽³⁾  Reflects share based compensation expense other than compensation expense related to exchange of ownership units that were outstanding under our long-term cash incentive plan at the time of our IPO for shares of La Quinta Holdings Inc. common stock.

15

ADJUSTED NET INCOME AND

PRO FORMA AND ADJUSTED EARNINGS PER SHARE

NON-GAAP RECONCILIATION

(unaudited, in thousands, except per share data)

	Historical three months		Pro forma three months		Historical three months		Pro forma three months
	ended		ended		ended		ended
	September 30, 2014		September 30, 2014		September 30, 2013		September 30, 2013
Net Income Attributable to La Quinta Holdings’ stockholders(1)	$	12,817	$	20,997	$	22,570	$	17,812
Equity- based compensation(2)		5,420		—		—		—
Adjusted Net Income Attributable to La Quinta Holdings’ stockholders	$	18,237	$	20,997	$	22,570	$	17,812
Weighted average common shares outstanding, basic		127,734		127,734		121,996		121,996
Weighted average common shares outstanding, diluted		128,494		128,494		121,996		121,996
Earnings per share, basic and diluted	$	0.10	$	0.16	$	0.19	$	0.15
Adjusted Earnings per share, basic and diluted	$	0.14			$	0.19

⁽¹⁾  Includes the impact of the Company’s discontinued operations on a historical basis for the periods presented

⁽²⁾  Share based compensation adjustment, which reflects the expense to exchange Units that were outstanding under our long-term cash incentive plan at the time of our IPO for shares of La Quinta Holdings Inc. common stock, 80% of which vest within one year of the IPO.

	Historical nine months			Pro forma nine months		Historical nine months		Pro forma nine months
	ended			ended		ended		ended
	September 30, 2014			September 30, 2014		September 30, 2013		September 30, 2013
Net Income (Loss) Attributable to La Quinta Holdings’ stockholders(1)	$	(333,104	)	$	46,136	$	8,648	$	36,599
Recognition of net deferred tax liabilities upon C-corporation conversion(2)		321,054			—		—		—
Equity- based compensation(3)		31,667			—		—		—
Impairment loss		5,157			—		—		—
Loss on extinguishment of debt		2,030			—		—		—
Adjusted Net Income Attributable to La Quinta Holdings’ stockholders	$	26,804		$	46,136	$	8,648	$	36,599
Weighted average common shares outstanding, basic		125,542			125,542		121,996		121,996
Weighted average common shares outstanding, diluted		126,084			126,084		121,996		121,996
Earnings per share, basic and diluted	$	(2.65	)	$	0.37	$	0.07	$	0.30
Adjusted Earnings per share, basic and diluted	$	0.21				$	0.07

⁽¹⁾  Includes the impact of the Company’s discontinued operations on a historical basis for the periods presented.

⁽²⁾  One-time net tax expense, which reflects the establishment of a net deferred tax liability associated with the La Quinta Predecessor Entities becoming owned by La Quinta Holdings Inc., a “C” corporation for income tax purposes.

⁽³⁾  Share based compensation adjustment, which reflects the expense to exchange Units that were outstanding under our long-term cash incentive plan at the time of our IPO for shares of La Quinta Holdings Inc. common stock, 80% of which vest within one year of the IPO.

16

LA QUINTA HOLDINGS INC.

DEFINED TERMS

“EBITDA” and “Adjusted EBITDA.” Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is a commonly used measure in many industries. We adjust EBITDA when evaluating our performance because we believe that the adjustment for certain items, such as restructuring and acquisition transaction expenses, impairment charges related to long-lived assets, non-cash equity-based compensation, discontinued operations, and other items not indicative of ongoing operating performance, including other items relating to the IPO Transactions, provides useful supplemental information to management and investors regarding our ongoing operating performance. We believe that EBITDA and Adjusted EBITDA provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA and Adjusted EBITDA are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions; and (ii) EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors, lenders and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry.

EBITDA and Adjusted EBITDA are not recognized terms under GAAP, have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss), cash flow or other methods of analyzing our results as reported under GAAP. Some of these limitations are:

• EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;

• EBITDA and Adjusted EBITDA do not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;

• EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes;

• EBITDA and Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;

• EBITDA and Adjusted EBITDA do not reflect the impact on earnings or changes resulting from matters that we consider not to be indicative of our future operations;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; and

• other companies in our industry may calculate EBITDA and Adjusted EBITDA differently, limiting their usefulness as comparative measures.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations.

“Adjusted Net Income” and “Adjusted Earnings Per Share” are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss), earnings per share, or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company’s definitions of Adjusted Net Income and Adjusted Earnings Per Share may not be comparable to similarly titled measures of other companies.

Adjusted Net Income and Adjusted Earnings Per Share are included to assist investors in performing meaningful comparisons of past, present and future operating results and as a means of highlighting the results of the Company’s ongoing operations.

“ADR” or “average daily rate” means hotel room revenues divided by total number of rooms sold in a given period.

“comparable hotels” means hotels that: (i) were active and operating in our system for at least one full calendar year as of the end of the applicable period and were active and operating as of January 1st of the previous year; and (ii) have not sustained substantial property damage or business interruption or for which comparable results are not available. Management uses comparable hotels as the basis upon which to evaluate ADR, occupancy, RevPAR and RevPAR Index on a system-wide basis and for each of our reportable segments.

“occupancy” means the total number of rooms sold in a given period divided by the total number of rooms available at a hotel or group of hotels.

“RevPAR” or “revenue per available room” means the product of the ADR charged and the average daily occupancy achieved.

“RevPAR Index” measures a hotel’s fair market share of its competitive set’s revenue per available room.

“system-wide” refers collectively to our owned, franchised and managed hotel portfolios.

17