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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
---------------------- ------------------------------------------------------------
1997 1996 1996 1995 1994 1993 1992
--------- --------- --------- --------- --------- --------- ---------
Earnings (loss) before income
taxes, extraordinary items
and cumulative effect of
accounting change (1) ........... $ 67,118 $ 49,245 $ 96,379 $ 82,994 $ 61,991 $ 31,836 $ (7,270)
Partners' equity in earnings ....... 476 928 1,499 10,227 11,406 12,965 15,081
Partners' equity in earnings
of combined unincorporated
ventures that do not have
fixed charges ................... -- (563) (770) (1,854) (1,577) (1,652) (1,504)
Fixed charges ...................... 28,962 23,469 48,983 42,797 40,814 32,477 34,270
Interest capitalized ............... (4,033) (2,227) (5,429) (1,313) (889) -- (50)
Amortization of capitalized
interest ........................ 491 422 893 803 772 799 799
--------- --------- --------- --------- --------- --------- ---------
Earnings as adjusted ........... $ 93,014 $ 71,274 $ 141,555 $ 133,654 $ 112,517 $ 76,425 $ 41,326
========= ========= ========= ========= ========= ========= =========
Fixed charges:
Interest on long-term debt
(before capitalized
interest) ..................... $ 28,359 $ 22,951 $ 47,897 $ 41,734 $ 39,749 $ 31,366 $ 33,137
Portion of rental expense
allocated to interest ......... 603 518 1,086 1,063 1,065 1,111 1,133
--------- --------- --------- --------- --------- --------- ---------
Total fixed charges .......... $ 28,962 $ 23,469 $ 48,983 $ 42,797 $ 40,814 $ 32,477 $ 34,270
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to fixed
charges ......................... 3.2x 3.0x 2.9x 3.1x 2.8x 2.4x 1.2x
========= ========= ========= ========= ========= ========= =========
(1) The Six Months Ended June 30, 1996 and Years Ended December 31, 1996 and
1995, include a non-cash provision for premature retirement of assets
totaling $9,062, $18,076 and $12,630, respectively.