La Quinta(R) Pays Off Bank Term Loan

Press Release: La Quinta Corporation
July 5, 2002
DALLAS, TX -- La Quinta® Corporation (NYSE: LQI) announced July 3 that it has recently prepaid the outstanding balance of its bank term loan. As of June 21, 2002, total indebtedness has been reduced to $812 million with no significant near-term debt maturities this year and the company maintains significant liquidity with cash on hand of $125 million. The company has no borrowings under its $225 million revolving line of credit.

"Our strategy of selling non-strategic assets continues to generate significant cash proceeds," commented David L. Rea, Executive Vice President and Chief Financial Officer. "Proceeds from additional asset sales, cash on hand and availability under our revolver gives us the financial flexibility to pursue investment opportunities as well as manage 2003 debt maturities."

About La Quinta Corporation

Dallas-based La Quinta Corporation, a mid-scale limited service lodging company, owns, operates or franchises over 330 La Quinta Inns and La Quinta Inn & Suites in 33 states. This news release, as well as other information about La Quinta, is available on the Internet at www.LQ.com .

SOURCE: La Quinta Corporation