Exhibit 12
LA QUINTA INNS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
Nine Months
Ended September 30 Years Ended December 31
--------------------- -------------------------------------------------------
1996 1995 1995 1994 1993 1992 1991
-------- ------- ------- ------- ------- ------- -------
Earnings (loss) before income
taxes, extraordinary items
and cumulative effect of
accounting change (1). . . . . . . $ 82,020 $ 68,970 $ 82,994 $ 61,991 $31,836 $(7,270) $ 2,185
Partners' equity in earnings . . . . . 1,264 9,611 10,227 11,406 12,965 15,081 9,421
Partners' equity in earnings of
combined unincorporated
ventures that do not have
fixed charges. . . . . . . . . . . (705) (1,452) (1,854) (1,577) (1,652) (1,504) (845)
Fixed charges. . . . . . . . . . . . . 35,952 32,015 42,797 40,814 32,477 34,270 40,012
Interest capitalized . . . . . . . . . (3,596) (817) (1,313) (889) -- (50) --
Amortization of capitalized
interest . . . . . . . . . . . . . 647 599 803 772 799 799 1,064
-------- -------- -------- -------- ------- ------- -------
Earnings as adjusted. . . . . . . $115,582 $108,926 $133,654 $112,517 $76,425 $41,326 $51,837
-------- -------- -------- -------- ------- ------- -------
-------- -------- -------- -------- ------- ------- -------
Fixed charges:
Interest on long-term debt
(before capitalized
interest) . . . . . . . . . . . . $ 35,141 $ 31,220 $ 41,734 $ 39,749 $31,366 $33,137 $38,713
Portion of rental expense
allocated to interest . . . . . . 811 795 1,063 1,065 1,111 1,133 1,299
-------- -------- -------- -------- ------- ------- -------
Total fixed charges. . . . . . . $ 35,952 $ 32,015 $ 42,797 $ 40,814 $32,477 $34,270 $40,012
-------- -------- -------- -------- ------- ------- -------
-------- -------- -------- -------- ------- ------- -------
Ratio of earnings to fixed
charges. . . . . . . . . . . . . . 3.2x 3.4x 3.1x 2.8x 2.4x 1.2x 1.3x
-------- ------- ------- ------- ------- ------- -------
-------- ------- ------- ------- ------- ------- -------
(1) The Nine Months Ended September 30, 1996 and 1995 and the Year Ended
December 31, 1995, include a non-cash provision for premature retirement of
assets totaling $12,203, $8,577 and $12,630, respectively.
16