Exhibit 12
LA QUINTA INNS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
Three Months
Ended March 31 Years Ended December 31
----------------------- -------------------------------------------------------------------
1998 1997 1997 1996 1995 1994 1993
-------- --------- ---------- --------- --------- --------- --------
Earnings (loss) before income
taxes, extraordinary items
and cumulative effect of
accounting change (1)........ $30,700 $26,426 $137,489 $96,379 $82,994 $61,991 $31,836
Partners' equity in earnings... 204 233 860 1,499 10,227 11,406 12,965
Partners' equity in earnings
of combined unincorporated
ventures that do not have
fixed charges................ -- -- -- (770) (1,854) (1,577) (1,652)
Fixed charges.................. 17,669 13,925 61,038 48,983 42,797 40,814 32,477
Interest capitalized........... (3,204) (2,120) (9,645) (5,429) (1,313) (889) --
Amortization of capitalized
interest..................... 280 240 1,035 893 803 772 799
-------- --------- ---------- --------- --------- --------- --------
Earnings as adjusted....... $45,649 $38,704 $190,777 $141,555 $133,654 $112,517 $76,425
======== ========= ========== ========= ========= ========= ========
Fixed charges:
Interest on long-term debt
(before capitalized
interest)................. $17,333 $13,642 $59,793 $47,897 $41,734 $39,749 $31,366
Portion of rental expense
allocated to interest..... 336 283 1,245 1,086 1,063 1,065 1,111
-------- --------- ---------- --------- --------- --------- --------
Total fixed charges...... $17,669 $13,925 $61,038 $48,983 $42,797 $40,814 $32,477
======== ========= ========== ========= ========= ========= ========
Ratio of earnings to fixed
charges..................... 2.6x 2.8x 3.1x 2.9x 3.1x 2.8x 2.4x
======== ========= ========== ========= ========= ========= ========
(1) The Years Ended December 31, 1996 and 1995, include a non-cash provision for
premature retirement of assets totaling $18,076 and $12,630, respectively.