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LA QUINTA MOTOR INNS, INC. REPORTS THIRD QUARTER RESULTS

 LA QUINTA MOTOR INNS, INC. REPORTS THIRD QUARTER RESULTS
 SAN ANTONIO, Oct. 21 /PRNewswire/ -- La Quinta Motor Inns, Inc. (NYSE: LQM) reported revenues for the third quarter of 1992 improved 6.5 percent or $4,452,000 to $72,696,000 as compared to the same quarter in 1991. Revenues for the nine month period of $198,360,000 increased $9,413,000 from the comparable period in 1991. The improvement in revenues resulted from increases in the average room rate over the prior year's comparable periods and improved occupancy for the current three month period.
 Operating income was $22,081,000 and $53,242,000 for the three and nine month periods, respectively, before provisions for write-downs, severance and other employee related costs and other non-recurring charges, and the effect of a change in the estimated useful lives of buildings. This compares to 1991 third quarter and nine month operating income, before write-downs, severance and other employee related costs, of $19,026,000 and $42,596,000, respectively.
 As previously announced, the company recorded charges of approximately $38,000,000 ($27,000,000 net of income taxes and partners' equity in earnings or $2.01 per share) in the third quarter of 1992. Of these primarily non-recurring, non-cash charges, $28,383,000 related to the write-down of certain joint venture interests, land and computer equipment. In addition, $5,262,000 related to severance and other employee related charges arising from the reduction of 107 administrative positions, including the closing of nine regional offices. The remaining $4,432,000 of these non-recurring charges affected various corporate expenses and partners' equity in earnings and losses.
 Also, as previously announced, the company completed a review of the depreciable lives of its assets and, as a result, extended the estimated useful lives of its buildings from 30 years to 40 years effective Jan. 1, 1992. The effect of this change decreased depreciation expense by approximately $7,000,000 ($3,300,000 net of income taxes and partners' equity in earnings or $.25 per share) for the nine month period. The entire adjustment was recorded in the third quarter operating results. Approximately $1,200,000, net of income taxes and partners' equity in earnings, or $.09 per share, was attributable to the third quarter, with the balance applicable to the first six months of the year.
 The charges and depreciation adjustment resulted in an operating loss of ($7,782,000) for the third quarter and operating income of $21,705,000 for the nine months. This compares to operating income of $19,026,000 and $35,844,000 in the 1991 three and nine month periods, respectively. The nine month period of 1991 was impacted by a $3,855,000 provision for write-downs and a $2,897,000 charge for severance and other employee related costs.
 The net loss of ($16,392,000) or ($1.22) per share for the third quarter and ($11,009,000) or ($.82) per share for the nine months is compared to net income of $5,266,000 or $.40 per share and $2,612,000 or $.20 per share, respectively, in the 1991 periods. The 1991 third quarter included extraordinary losses of ($358,000) or ($.02) per share. The 1992 and 1991 nine month periods also included extraordinary losses of ($572,000) or ($.04) per share and ($821,000) or ($.06) per share, respectively. Extraordinary losses resulted from the refinancing of certain variable rate debt.
 La Quinta Motor Inns, Inc. owns and operates over 200 limited service inns in 29 states.
 LA QUINTA MOTOR INNS, INC.
 Periods ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Revenues (000) $ 72,696 $ 68,244 $198,360 $188,947
 Operating Expenses:
 Direct (000) 36,898 36,290 103,344 104,874
 Corporate (000) 8,011 4,326 18,812 15,021
 Provisions for
 write-down of
 partnership
 investments, land and
 other assets (000) 28,383 -- 28,383 3,855
 Severance and other
 employee related
 costs (000) 5,262 -- 6,936 2,897
 Depreciation,
 amortization and
 fixed asset
 retirements (000) 1,924 8,602 19,180 26,456
 Operating income
 (loss) (000) $ (7,782) $ 19,026 $ 21,705 $ 35,844
 Net earnings (loss)
 before extraordinary
 items (000) $(16,392) $ 5,624 $(10,437) $ 3,433
 Net earnings (loss) per
 share before
 extraordinary items $ (1.22) $ .42 $ (.78) $ .26
 Net earnings (loss)(000) $(16,392) $ 5,266 $(11,009) $ 2,612
 Net earnings (loss)
 per share $ (1.22) $ .40 $ (.82) $ .20
 Percentage of occupancy 73.9 pct. 71.1 pct. 67.8 pct. 67.5 pct.
 Average room rate $ 44.59 $ 43.99 $ 44.59 $ 43.21
 -0- 10/21/92
 /CONTACT: La Quinta Motor Inns, Inc., investor relations, 512-366-6030/
 (LQM) CO: La Quinta Motor Inns, Inc. ST: Texas IN: LEI SU: ERN


AH -- NY130 -- 3182 10/21/92 17:58 EDT
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Date:Oct 21, 1992
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