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LA QUINTA MOTOR INNS LIMITED PARTNERSHIP ANNOUNCES THIRD QUARTER RESULTS

 SAN ANTONIO, Texas, Oct. 22 /PRNewswire/ -- La Quinta Motor Inns Limited Partnership (NYSE: LQP) today announced that revenues for the third quarter ended Sept. 30, 1993 increased 2.1 percent or $251,000 to $12,306,000 as compared to last year's comparable quarter and that total revenues for the nine month period ended Sept. 30, 1993 increased 4.9 percent or $1,642,000 to $34,860,000 as compared to last year's comparable nine month period.
 Operating income for the third quarter and the nine month period ended Sept. 30, 1993 was $2,777,000 and $6,760,000, respectively, before litigation and solicitation costs related to matters finally settled in early July 1993. This compares to the 1992 third quarter and nine month operating income of $2,435,000 and $6,292,000, respectively, before litigation and solicitation costs.
 Earnings (loss) before income taxes and cumulative effect of change in accounting for income taxes were $855,000 for the third quarter and $604,000 for the nine months compared to ($143,000) and ($533,000), respectively, in the 1992 periods. The nine month results for 1993 included the effect of a change in accounting for income taxes as required by Statement of Financial Accounting Standard No. 109 "Accounting for Income Taxes" ("SFAS 109"). The cumulative effect of this change in accounting for income taxes was ($2,800,000) or ($.69) per unit. Additionally, the partnership recognized $115,000 and $345,000 of deferred income tax expense for the third quarter and the nine month period of 1993, respectively. Although the partnership is not a taxable entity in 1993 and will pay no federal or state income taxes, under current provisions of U.S. federal tax law it will become a taxable entity in 1998. Since the change from non-taxable to taxable status for the partnership is based on the provisions of enacted tax law, SFAS 109 requires that deferred taxes be recognized beginning in 1993. Net earnings (loss) were $855,000 or $.21 per unit for the third quarter and ($2,196,000) or ($.55) per unit for the nine months compared to net loss of ($143,000) or ($.03) per unit and a net loss of ($533,000) or ($.13) per unit, respectively, in the 1992 period.
 La Quinta Motor Inns Limited Partnership owns 31 La Quinta inns in 15 states.
 LA QUINTA MOTOR INNS LIMITED PARTNERSHIP
 Consolidated Condensed Statements of Operations
 (Unaudited)
 Periods ended Sept. 30 Three Months Nine Months
 1993 1992 1993 1992
 Revenues $12,306,000 $12,055,000 $34,860,000 $33,218,000
 Operating costs and
 expenses:
 Operating
 expenses 9,529,000 9,620,000 28,100,000 26,926,000
 Unitholder litigation/
 solicitation 9,000 756,000 401,000 1,304,000
 Total operating
 costs and expenses 9,538,000 10,376,000 28,501,000 28,230,000
 Operating income 2,768,000 1,679,000 6,359,000 4,988,000
 Other income (expenses):
 Interest, net (1,789,000) (1,823,000) (5,432,000) (5,526,000)
 La Quinta Realty
 Corp. equity in
 earnings (loss) of
 Operating Partnership (9,000) 1,000 22,000 5,000
 Total other income
 (expenses) (1,798,000) (1,822,000) (5,410,000) (5,521,000)
 Earnings (loss) before
 income taxes and
 cumulative effect of
 change in accounting
 for income taxes 970,000 (143,000) 949,000 (53,000)
 Income taxes 115,000 -- 345,000 --
 Earnings (loss) before
 cumulative effect of
 change in accounting
 for income taxes $ 855,000 $ (143,000) $ 604,000 $ (533,000)
 Cumulative effect of
 change in accounting
 for income taxes -- -- 2,800,000 --
 Net earnings (loss) $855,000 $(143,000) $(2,196,000) $(533,000)
 General partner's
 interest $ 9,000 $ (1,000) $ (22,000) $ (5,000)
 Limited partners'
 expense $ 846,000 $ (142,000) $(2,174,000) $(528,000)
 $ 855,000 $ (143,000) $(2,196,000) $(533,000)
 Net earnings (loss) per
 limited partnership
 unit:
 Earnings (loss) per
 unit before cumul-
 ative effect of
 change in accounting
 for income taxes $ .21 $ (.03) $ .14 $ (.13)
 Cumulative effect of
 change in accounting
 for income taxes $ -- $ -- $ (.69) $ --
 Net earnings (loss)
 per unit $ .21 $ (.03) $ (.55) $ (.13)
 Average room rate $ 44.74 $ 42.34 $ 44.46 $ 42.42
 Percentage of occupancy 73.9 76.3 70.9 70.5
 LA QUINTA MOTOR INNS LIMITED PARTNERSHIP
 Consolidated Condensed Balance Sheets
 (unaudited, in thousands)
 September 30, December 31,
 1993 1992
 ASSETS
 Cash $1,982 $ 423
 Other current assets 2,237 1,576
 Total current assets 4,219 1,999
 Property and equipment 146,108 144,757
 Accumulated depreciation and
 amortization (38,346) (34,140)
 Deferred charges and other assets,
 at cost less applicable amortization 513 754
 $112,494 $113,370
 LIABILITIES & SHAREHOLDERS' EQUITY
 Current liabilities $ 6,212 $ 4,440
 Current installments of long-term
 debt 1,497 1,261
 Total current liabilities 7,709 5,701
 Long-term debt, excluding current
 installments 65,827 67,047
 Deferred credits, principally income
 taxes 3,226 36
 La Quinta Realty Corp equity in
 Operating Partnership (366) (318)
 Partners' capital 36,098 40,904
 $112,494 $113,370
 -0- 10/22/93
 /CONTACT: La Quinta Motor Inns Limited Partnership Investor Relations, 210-302-6030/
 (LQP)


CO: La Quinta Motor Inns Limited Partnership ST: Texas IN: LEI SU: ERN

TM -- NY087 -- 5974 10/22/93 19:22 EDT
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Publication:PR Newswire
Date:Oct 22, 1993
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