Press Release: La Quinta Companies
January 2, 2002
DALLAS, TX -- The La Quinta Companies (NYSE: LQI; ``La Quinta'' or ``the Companies'') announced Dec. 21 that the
Companies' shareholders approved the restructuring of La Quinta Corporation and La Quinta Properties, Inc. at special
meetings of shareholders held yesterday in Dallas, Texas. Shareholders also approved a new stock option and incentive
plan, which will replace the existing equity incentive plans, as well as a new employee stock purchase plan.
As a result of the approved restructuring, La Quinta Properties, Inc. will become a subsidiary of La Quinta Corporation.
The restructuring remains subject to customary closing conditions. The Companies expect to close the transaction
in January 2002. Following the closing of the transaction, new paired securities, representing common stock of
La Quinta Corporation and Class B common stock of La Quinta Properties, Inc., will be issued to shareholders in
exchange for their current paired securities on a one-for-one basis. Instructions regarding the exchange of certificates
will be delivered to shareholders promptly after the closing of the transaction. La Quinta will continue to trade
on the New York Stock Exchange after the closing of the transaction under the ticker symbol ``LQI'' but under the
name La Quinta Corporation.
Francis W. (``Butch'') Cash, President and Chief Executive Officer, said, ``We are pleased to receive the overwhelming
support for the restructuring by over 95% of our voting shareholders. The new corporate structure will allow us
to pursue growth opportunities in our lodging business while maintaining La Quinta Properties, Inc.'s advantageous
REIT status. We look forward to continuing with our plans to enhance the value of La Quinta.''
About The La Quinta Companies
The La Quinta Companies, headquartered in Dallas, Texas, consist of La Quinta Properties, Inc., a real estate investment
trust, and La Quinta Corporation. La Quinta owns, operates or franchises over 300 La Quinta® Inns and La Quinta®
Inn & Suites in 30 states. The Companies' real estate holdings also include assisted living and other healthcare
facilities. This news release, as well as other information about La Quinta, is available on the Internet at www.laquinta.com .
Certain matters discussed herein may constitute ``forward-looking statements'' within the meaning of the Private
Securities Litigation Reform Act of 1995. The Companies, consisting of La Quinta Properties, Inc. (``Realty'')
and La Quinta Corporation (``Operating''), intend such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements, and are including this statement for purposes of complying with these
safe harbor provisions. Although the Companies believe the forward-looking statements are based on reasonable assumptions,
the Companies can give no assurance that their expectations will be attained. Actual results and the timing of
certain events could differ materially from those projected in or contemplated by the forward-looking statements
due to a number of factors, including, without limitation, the Companies' ability to realize the anticipated benefits
of the restructuring, including the growth of its lodging business, the ability to fulfill the closing conditions
on the proposed terms by the anticipated date of the closing, competition in franchising the Companies' brands,
the ultimate outcome of certain litigation filed against the Companies, the enactment of legislation further impacting
the Companies' status as a paired share real estate investment trust (``REIT'') or Realty's status as a REIT, the
continued ability of Realty to qualify for taxation as a REIT and other risks detailed from time to time in the
Companies' other press releases, the filings of Realty and Operating with the Securities and Exchange Commission
(``SEC''), including, without limitation, the risks described in Item 7 of the Joint Annual Report on Form 10-K
entitled ``Certain Factors You Should Consider.'' The Companies disclaim any intention or obligation to update
or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Additional Information and Where To Find It
This material is not a substitute for the joint proxy statement/prospectus La Quinta Corporation and La Quinta
Properties, Inc. have filed with the Securities and Exchange Commission. Investors are urged to read the joint
proxy statement/prospectus which contains important information, including detailed risk factors. The joint proxy
statement/prospectus and other documents filed by La Quinta Corporation and La Quinta Properties, Inc. with the
Securities and Exchange Commission are available free of charge at the SEC's website (www.sec.gov
) or by directing a request to La Quinta Corporation, 909 Hidden Ridge, Suite 600, Irving, Texas, Attn: Investor
Relations, telephone (877) 777-6560; or by directing a request to La Quinta Properties, Inc., 909 Hidden Ridge,
Suite 600, Irving, Texas, Attn: Investor Relations, telephone (877) 777-6560.
The La Quinta Companies, its directors, and certain of its executive officers may be considered participants in
the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive
officers of La Quinta Corporation and La Quinta Properties, Inc. and their ownership of La Quinta Corporation and
La Quinta Properties, Inc. stock is set forth in the joint proxy statement/prospectus filed by The La Quinta Companies
SOURCE: La Quinta Companies