– Grew franchise and other fee based revenue 6.4 percent

– Adjusted Earnings per Share increased to $0.21 and GAAP Net Income per Share was $0.13

– Grew development pipeline to 238 hotels

– Completed a $100 million share repurchase program

IRVING, Texas, Aug. 2, 2016 — La Quinta Holdings Inc. ("La Quinta" or the "Company") (NYSE: LQ) today reported its second quarter 2016 results.

Second Quarter 2016 Highlights

  • Cash flow generation remained strong, as demonstrated by $105.4 million of Total Adjusted EBITDA
  • Adjusted Earnings per Share increased by $0.02 to $0.21; GAAP Net Income per Share was $0.13, including the impact of a non-cash impairment charge of $0.14 per share
  • Adjusted Net Income decreased 0.3 percent to $24.1 million; GAAP Net Income was $14.8 million, including the impact of a non-cash impairment charge of $16.2 million
  • System-wide comparable RevPAR increased 0.2 percent, ADR increased 1.5 percent and occupancy decreased 91 basis points; excluding properties located in STR-defined "oil tracts", RevPAR increased 1.6 percent
  • Opened 11 franchised hotels totaling approximately 1,100 rooms, including a location in New York City at Central Park West
  • Increased franchise pipeline to 238 hotels, representing over 21,500 additional rooms, including new franchise agreements for our first location in El Salvador and our second location in Alaska
  • Completed a second $100 million share repurchase program, acquiring a total of $75 million of shares as of June 30, 2016, bringing total shares outstanding at the end of the quarter to 116.8 million.

Overview Keith A. Cline, President & Chief Executive Officer of La Quinta, said, "During the quarter, we continued to advance our strategic initiatives which are designed to drive consistency in our product and in the delivery of an outstanding guest experience, and to drive increased engagement with our brand. On the development front, we continued to see a tremendous amount of interest in growing the La Quinta brand from our franchise partners. This allowed us to grow our current and future footprint in the second quarter by opening eleven new hotels, including a key location in New York City at Central Park West, and by signing 26 new franchise agreements, including our first location in El Salvador and our second location in Alaska, bringing our total pipeline to 238 hotels."

Mr. Cline continued, "Also during the quarter, we delivered positive results in several markets where we experienced double digit and high single digit RevPAR growth. Additionally, the impact of the significant pullback in oil production has moderated in terms of year-over-year RevPAR comparisons, and our hotels in the oil markets have improved their overall market share. However, these hotels continue to lag that of the rest of the system, and excluding the hotels in these oil markets, our second quarter system-wide comparable RevPAR would have been up 1.6 percent as compared to last year, an impact of 140 basis points. We remain confident that the strategic priorities and initiatives we are executing will drive brand performance as well as continued strong cash flow generation and long-term shareholder value."

The results of operations for the Company for the three months ended June 30, 2016 and 2015 include the following highlights (1) ($ in thousands, except per share amounts):

Three months ended June 30,

2016

2015

% chg

Total Revenue

$

269,555

$

273,888

-1.6

%

Franchise and Management Segment Adj. EBITDA

30,900

30,144

2.5

%

Owned Hotels Segment Adj. EBITDA

83,239

90,636

-8.2

%

Total Adj. EBITDA

105,411

111,836

-5.7

%

Total Adj. EBITDA margin

39.1

%

40.8

%

Operating Income Margin

15.0

%

5.5

%

Adj. Operating Income Margin

20.8

%

22.9

%

Three Months Ended

Three Months Ended

June 30, 2016

June 30, 2015

% Change

Net

Income

Basic

and

Diluted

EPS

Net

Income

Basic

and

Diluted

EPS

Net

Income

Basic

and

Diluted

EPS

Adjusted Net Income Attributable to La Quinta Holdings' stockholders(1)

$

24,146

$

0.21

$

24,217

$

0.19

-0.3

%

10.5

%

Net Income (Loss) Attributable to La Quinta Holdings' stockholders

14,849

0.13

(4,663)

(0.04)

NM

(2)

NM

(2)

(1)

See the schedules to this press release for a reconciliation of the adjusted results of operations to the most directly comparable financial measures calculated in accordance with Generally Accepted Accounting Principles ("GAAP"), as well as a discussion of the adjustments made.

(2)

Changes in terms of percentages is not meaningful.

Comparable hotel statistics

Three months ended June 30, 2016

Variance three months ended June 30, 2016 vs. 2015

Six months ended June 30, 2016

Variance six months ended June 30, 2016 vs. 2015

Owned Hotels

Occupancy

69.5

%

-156 bps

66.2

%

-198 bps

ADR

$

84.34

2.0

%

$

84.31

1.1

%

RevPAR

$

58.62

-0.3

%

$

55.79

-1.8

%

Franchised Hotels

Occupancy

71.3

%

-21 bps

66.7

%

-54 bps

ADR

$

94.48

0.8

%

$

91.42

0.4

%

RevPAR

$

67.33

0.5

%

$

61.00

-0.5

%

System-wide

Occupancy

70.3

%

-91 bps

66.4

%

-129 bps

ADR

$

89.25

1.5

%

$

87.73

0.8

%

RevPAR

$

62.78

0.2

%

$

58.28

-1.1

%

Development During the second quarter, the Company opened 11 franchised hotels, including two temporary franchised hotels related to formerly owned hotels which are in the process of leaving the system, representing approximately 1,100 rooms and resulting in net franchise units growing by eight. As of June 30, 2016, the Company had a pipeline of 238 franchised hotels totaling over 21,500 rooms, to be located in the United States, Mexico, Colombia, Nicaragua, Guatemala, Chile, and El Salvador. The Company believes this pipeline represents a significant embedded growth opportunity for the brand.

The Company's system-wide portfolio, as of June 30, 2016, is located across 48 states in the U.S., as well as in Canada, Mexico and Honduras. The portfolio includes:

June 30, 2016

June 30, 2015

# of hotels

# of rooms

# of hotels

# of rooms

Owned (1)

335

42,700

351

44,600

Joint Venture

1

200

1

200

Franchised

553

45,000

526

42,400

Totals

889

87,900

878

87,200

(1)

As of June 30, 2016, Owned includes 13 hotels (1,500 rooms) designated as assets held for sale, which are subject to definitive purchase agreements.

Owned Hotel Portfolio During the third quarter of 2015, the Company entered into a definitive purchase and sale agreement for the sale of 24 of its owned hotels. Of these 24 hotels, 14 have closed as of the end of the second quarter, and the buyers are currently contractually obligated to close the remaining 10 before the end of the third quarter of 2016. During the second quarter of 2016, the Company closed the sale of additional owned hotels located in Orlando, Florida and Greenville, South Carolina, and entered into definitive purchase and sale agreements for the sale of three additional owned hotels located in Charleston, South Carolina, Georgetown, Texas, and Huntsville, Texas.

Balance Sheet and Liquidity As of June 30, 2016, the Company had approximately $1.7 billion of outstanding indebtedness with a weighted average interest rate of approximately 4.3%, including the impact of an interest rate swap. During the second quarter of 2016, the Company repurchased 6.1 million of its shares for an aggregate purchase price of approximately $75 million, for a year-to-date total of 8.1 million shares for approximately $100 million. Total cash and cash equivalents was $64.1 million as of June 30, 2016.

To view full financial release and corresponding tables please click the PDF icon or visit:

http://ir.lq.com/file.aspx?IID=4424891&FID=35342572