EXHIBIT 12
LA QUINTA INNS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIOS)
SIX MONTHS
ENDED JUNE 30, YEARS ENDED DECEMBER 31,
-------------------- ------------------------------------------------------
1995 1994 1994 1993 1992 1991 1990
--------- --------- ---------- --------- --------- --------- ---------
Earnings (loss) before income taxes
and extraordinary items and
cumulative effect of accounting
change............................ $ 44,848 $ 27,577 $ 61,991 $ 31,836 $ (7,270) $ 2,185 $ 3,398
Partners' equity in earnings and
losses............................ 8,976 5,522 11,406 12,965 15,081 9,421 8,408
Partners' equity in earnings of
combined unincorporated ventures
that do not have fixed charges.... (995) (762) (1,577) (1,652) (1,504) (845) (802)
Fixed charges...................... 21,274 19,751 40,814 32,477 34,270 40,012 42,269
Interest capitalized............... (388) (597) (889) -- (50) -- --
Amortization of capitalized
interest.......................... 399 377 772 799 799 1,064 1,064
--------- --------- ---------- --------- --------- --------- ---------
Earnings as adjusted............. $ 74,114 $ 51,868 $ 112,517 $ 76,425 $ 41,326 $ 51,837 $ 54,337
--------- --------- ---------- --------- --------- --------- ---------
--------- --------- ---------- --------- --------- --------- ---------
Fixed charges:
Interest on long-term debt
(before capitalized interest)... $ 20,771 $ 19,196 $ 39,749 $ 31,366 $ 33,137 $ 38,713 $ 40,911
Portion of rental expense
allocated to interest........... 503 555 1,065 1,111 1,133 1,299 1,358
--------- --------- ---------- --------- --------- --------- ---------
Total fixed charges............ $ 21,274 $ 19,751 $ 40,814 $ 32,477 $ 34,270 $ 40,012 $ 42,269
--------- --------- ---------- --------- --------- --------- ---------
--------- --------- ---------- --------- --------- --------- ---------
Ratio of earnings to fixed
charges........................... 3.5x 2.6x 2.8x 2.4x 1.2x 1.3x 1.3x
--------- --------- ---------- --------- --------- --------- ---------
--------- --------- ---------- --------- --------- --------- ---------
COMPUTATION OF PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIOS)
The following computations for the six months ended June 30, 1995 and for
the year ended December 31, 1994 reflect, on a pro-forma basis, earnings
available for fixed charges, fixed charges and the resultant ratio, after giving
effect to the AEW Transaction and the sale of the Senior Notes and the
anticipated application of the net proceeds therefrom.
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
1995 1994
----------- ------------
Earnings as adjusted.................................................... $ 74,114 $ 112,517
Adjustments related to the AEW Transaction.............................. (548) (1,096)
----------- ------------
Pro forma, adjusted earnings............................................ $ 73,566 $ 111,421
----------- ------------
----------- ------------
Fixed charges........................................................... $ 21,274 $ 40,814
Pro forma adjustments:
Adjustment related to the AEW Transaction............................. 1,658 3,316
Interest expense, including debt issuance costs, relating to the
proceeds of the Senior Notes......................................... 4,050 8,100
Interest expense reduction attributable to the substitution of the
proceeds from the sale of the Senior Notes to refinance existing
debt................................................................. (3,688) (7,306)
----------- ------------
Pro forma fixed charges............................................. $ 23,294 $ 44,924
----------- ------------
----------- ------------
Pro forma ratio of earnings to fixed charges............................ 3.2x 2.5x
----------- ------------
----------- ------------