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La Quinta Holdings Inc. Reports First Quarter 2018 Results

First Quarter RevPAR Increased 4.3 percent; First Quarter Franchise and other Fee-based Revenue Grew 8.0 percent

IRVING, Texas, May 08, 2018 (GLOBE NEWSWIRE) -- La Quinta Holdings Inc. (“La Quinta” or the “Company”) (NYSE:LQ) today reported its results for the first quarter ended March 31, 2018.

First Quarter 2018 Highlights

  • Grew system-wide comparable RevPAR 4.3 percent; excluding the owned hotels significantly impacted by Hurricanes Irma and Harvey and the owned hotels undergoing significant renovation, system-wide RevPAR grew 5.9 percent

  • Franchise comparable RevPAR increased 7.8 percent, driving an increase in franchise and other fee-based revenue of 8.0 percent

  • System-wide RevPAR Index decreased by nine basis points; excluding the owned hotels significantly impacted by Hurricanes Irma and Harvey and the owned hotels undergoing significant renovation, system-wide RevPAR Index grew nearly 200 basis points

  • Opened eight franchised hotels, totaling over 650 rooms, including the first location in Chile

  • Franchise pipeline stands at 259 hotels, representing approximately 24,400 additional rooms, and the brand’s footprint continued to expand with 6 new franchise agreements for key locations in coastal North Carolina, St. Louis, Missouri and Yucaipa, California

  • Completed the construction phase of 12 renovations, bringing the total number of repositioning projects with construction complete to 39, as part of the Company’s owned hotel repositioning efforts

  • Reported Net Loss of $15.1 million; Adjusted Net Loss was $6.2 million

  • Generated Net Loss per Share of $0.13; Adjusted Net Loss per Share was $0.05

Overview                                         

“We are extremely pleased with our performance this quarter. We delivered gains in RevPAR despite the ongoing hurricane disruption in our owned hotel business, and continued to execute on our key strategic initiatives to deliver a consistent product, to consistently deliver an outstanding guest experience and to drive engagement with our brand,” said Keith A. Cline, President and Chief Executive Officer of La Quinta.  “We have completed the significant renovation of 39 owned hotels in our repositioning program and continue to be very encouraged by their early results.”

Mr. Cline continued, “We expect to complete the spin-off of our owned hotel assets into CorePoint Lodging as well as the sale of our franchise and management business to Wyndham Hotel Group by the end of this month.  These are exciting opportunities for the thriving La Quinta brand, which celebrates its 50th anniversary this year, and for our owned hotel portfolio as it transitions to become CorePoint Lodging, all of which we believe will yield long-term benefits to our stakeholders.”   

Financial Overview

For the first quarter of 2018, the Company grew system-wide comparable RevPAR 4.3 percent over the same period of 2017, driven by 7.8 percent growth in its franchise locations and a 0.2 percent increase in its owned hotels. Excluding the impact of the owned hotels undergoing significant renovation as part of the repositioning effort and the owned hotels affected by Hurricanes Harvey and Irma, system-wide comparable RevPAR increased 5.9 percent in the first quarter of 2018. The Company grew franchise and other fee-based revenue 8.0 percent in the first quarter of 2018, over the same period of 2017.

For the first quarter of 2018, the Company reported net loss of $15.1 million and Adjusted Net Loss of $6.2 million. Net Loss per Share was $0.13 and Adjusted Loss per Share was $0.05.  Total Adjusted EBITDA for the first quarter of 2018 was $64.0 million.

Hurricanes Harvey and Irma continued to have a significant impact on the Company’s business in the first quarter, once again lifting performance for the franchised hotels, and posing significant challenges for certain owned hotels, particularly those in Florida affected by Hurricane Irma. The Company estimates that the impact of the hurricanes on first quarter results was a reduction of approximately $11 million in Total Adjusted EBITDA.

The Company’s system-wide portfolio, as of March 31, 2018, is located across 48 states in the U.S., as well as in Canada, Mexico, Honduras, Colombia and Chile. The portfolio includes:

 

     March 31, 2018     March 31, 2017  
    # of hotels     # of rooms     # of hotels     # of rooms  
Owned (1)     315       40,300       318       40,700  
Joint Venture     1       200       1       200  
Franchised(2)     591       48,300       570       46,500  
Totals     907       88,800       889       87,400  

(1) As of March 31, 2018 and 2017, Owned included two hotels (300 rooms) and three hotels (400 rooms), respectively, designated as assets held for sale 

(2) As of both March 31, 2018 and 2017, Franchised included four hotels (500 rooms), respectively, under temporary franchise agreements related to formerly owned hotels which are in the process of leaving the system

The results of operations for the Company for the three months ended March 31, 2018 and 2017 include the following highlights  ($ in thousands, except per share amounts):
            

   Three Months Ended March 31,    
  2018 (1)     2017 (1)     % Change    
Total Revenue $ 228,780     $ 234,272       -2.3 %  
Franchise and Management Segment Adj. EBITDA   27,180       26,714       1.7 %  
Owned Hotels Segment Adj. EBITDA   49,247       58,721       -16.1 %  
Total Adj. EBITDA   64,012       71,950       -11.0 %  
Total Adj. EBITDA margin   28.0 %     30.7 %          
Operating Income   4,342       23,972       -81.9 %  
Operating Income Margin   1.9 %     10.2 %          
Adj. Operating Income   16,222       28,803       -43.7 %  
Adj. Operating Income Margin   7.1 %     12.3 %          

                        
(1) 2017 results include approximately $2 million of total revenues and approximately $0.6 million of Total Adjusted EBITDA from hotels sold in 2017 and 2018

    Three Months Ended     Three Months Ended        
    March 31, 2018     March 31, 2017     % Change  
    Net
Income
    Diluted
EPS
    Net
(Loss)
Income
    Diluted
EPS
    Net
(Loss)
Income
  Diluted
EPS
 
Net (Loss) Income Attributable to La Quinta Holdings’ stockholders   $ (15,139 )   $ (0.13 )   $ 1,589     $ 0.01     NM  (1) NM  (1)
Adjusted Net (Loss) Income Attributable to La Quinta Holdings’ stockholders   $ (6,187 )   $ (0.05 )   $ 4,488     $ 0.04     NM  (1) NM  (1)

(1) Change in terms of percentage is not meaningful

Comparable hotel statistics   Three Months
Ended March 31,
2018
    Variance Three
Months Ended
March 31, 2018 vs.
2017
   
Owned hotels                  
Occupancy     60.5 %     -245   bps
ADR   $ 89.23       4.3   %
RevPAR   $ 53.98       0.2   %
Franchised hotels                  
Occupancy     65.0 %     205   bps
ADR   $ 93.56       4.4   %
RevPAR   $ 60.81       7.8   %
System-wide                  
Occupancy     62.9 %     -7   bps
ADR   $ 91.60       4.4   %
RevPAR   $ 57.59       4.3   %


    Three Months
Ended March 31,
2018
    Variance three
months ended
March 31, 2018 vs.
2017
 
RevPAR Index(1)     93.7 %   -9 bps  

       
(1) Information based on the STR competitive set of hotels existing as of March 31, 2018

Development

During the first quarter of 2018, the Company opened a total of eight franchised hotels (over 650 rooms) and terminated two franchised hotels, resulting in a net increase of six open and operating franchised hotels during the first quarter.  As of March 31, 2018, the Company had a pipeline of 259 franchised hotels totaling approximately 24,400 rooms, to be located in the United States, Mexico, Colombia, Nicaragua, Guatemala, and El Salvador.

Owned Hotel Portfolio

As of March 31, 2018, the Company had two hotels held for sale. During the first quarter of 2018, the Company closed on the sale of one hotel. In addition, during the first quarter, construction progressed on the portfolio of approximately 50 owned hotels which the Company believes have the opportunity to be repositioned upward within their markets in order to drive enhanced guest experience and revenue growth. As of March 31, 2018, 39 of these hotels had completed the construction phase of the project and are now in the process of being reintroduced to their markets with encouraging early results.

Balance Sheet and Liquidity

As of March 31, 2018, the Company had approximately $1.7 billion of outstanding indebtedness with a weighted average interest rate of approximately 4.9%, including the impact of an interest rate swap. Total cash and cash equivalents was $113.5 million as of March 31, 2018.

Outlook

On January 18, 2018, Wyndham Worldwide Corporation (“Wyndham”) and La Quinta announced that they entered into a definitive agreement under which Wyndham will acquire La Quinta’s franchise and management business for $1.95 billion in cash.  The acquisition is expected to close in the second quarter of 2018, immediately following completion of the planned taxable spin-off of La Quinta’s owned real estate assets into a new publicly-traded real estate investment trust (the “Spin”), CorePoint Lodging Inc. (“CorePoint Lodging”). 

Given the expected timeline to close these transactions, La Quinta is not providing guidance for 2018.  Near the time of the Spin, management of CorePoint Lodging expects to conduct investor education meetings during which, among other items, financial and strategic outlooks will be provided.

Webcast and Conference Call

The Company will hold a conference call with prepared remarks for investors and other interested parties beginning at 5:00 p.m. Eastern Time on Tuesday, May 8, 2018.  Given the anticipated timing of the Spin, and the pending acquisition of the Company’s franchise and management business by Wyndham, the Company will not be hosting a question and answer session during the call.  The conference call may be accessed in listen-only mode by dialing (844) 395-9252, or (478) 219-0505 for international participants, and enter passcode 3985708.   

Listeners may also access the live call via webcast by visiting the Company's investor relations website at www.lq.com/investorrelations. You are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time.  The replay of the call will be available from approximately 8:00 a.m. Eastern Time on May 9, 2018 through midnight Eastern Time on May 16, 2018. To access the replay, the domestic dial-in number is (855) 859-2056, the international dial-in number is (404) 537-3406, and the passcode is 3985708. The archive of the webcast will be available on the Company's website for a limited time.

Forward-Looking Statements

The foregoing contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend for these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws relating to forward-looking statements. These forward-looking statements include statements relating to the expected timing, completion and effects of the proposed merger, separation and Spin, as well as other statements representing management’s beliefs about, future events, transactions, strategies, operations and financial results, including, without limitation, our expectations with respect to the costs and other anticipated financial impacts of the Spin and merger; future financial and operating results of CorePoint Lodging and La Quinta; the ability of La Quinta, CorePoint Lodging and Wyndham to complete the contemplated financing transactions and reorganizations in connection with the merger and the Spin; La Quinta’s plans, objectives, expectations and intentions with respect to future operations and services; the stock price of CorePoint Lodging following the consummation of the transactions; the stock price of La Quinta prior to the consummation of the transactions; and the satisfaction of the closing conditions to the proposed merger and the Spin. Such forward-looking statements often contain words such as “assume,” “will,” “anticipate,” “believe,” “predict,” “project,” “potential,” “contemplate,” “plan,” “forecast,” “estimate,” “expect,” “intend,” “is targeting,” “may,” “should,” “would,” “could,” “goal,” “seek,” “hope,” “aim,” “continue” and other similar words or expressions or the negative thereof or other variations thereon. Forward-looking statements are made based upon management’s current expectations and beliefs and are not guarantees of future performance. Such forward-looking statements involve numerous assumptions, risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. Our actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others, those risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”). You are urged to carefully consider all such factors. Although it is believed that the expectations reflected in such forward-looking statements are reasonable and are expressed in good faith, such expectations may not prove to be correct and persons reading this communication are therefore cautioned not to place undue reliance on these forward-looking statements which speak only to expectations as of the date of this communication. We do not undertake or plan to update or revise forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this communication, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If we make any future public statements or disclosures which modify or impact any of the forward-looking statements contained in or accompanying this press release, such statements or disclosures will be deemed to modify or supersede such statements in this press release.

Non-GAAP Financial Measures

The Company refers to certain non-GAAP financial measures in this press release including Total Adjusted EBITDA, Total Adjusted EBITDA margins, Segment Adjusted EBITDA, Adjusted Net (Loss) Income, Adjusted Operating Income and Adjusted (Loss) Earnings Per Share. Please see the schedules to this press release for additional information and reconciliations of such non-GAAP financial measures for historical periods.

About La Quinta Holdings Inc.

La Quinta Holdings Inc. (LQ) is a leading owner, operator and franchisor of select-service hotels primarily serving the upper-midscale and midscale segments. The Company’s owned and franchised portfolio consists of approximately 900 properties representing over 88,500 rooms located in 48 states in the U.S., and in Canada, Mexico, Honduras, Colombia and Chile. These properties operate under the La Quinta Inn & Suites®, La Quinta Inn® and LQ Hotel® brands. La Quinta’s team is committed to providing guests with a refreshing and engaging experience. For more information, please visit: www.LQ.com

From time to time, La Quinta may use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely accessible through and posted on its website at www.lq.com/investorrelations. In addition, you may automatically receive email alerts and other information about La Quinta when you enroll your email address by visiting the E-mail Alerts section at www.lq.com/investorrelations.   

Contacts:                                 
Investor Relations    Media
Kristin Hays    Teresa Ferguson
214-492-6896   214-492-6937
investor.relations@laquinta.com    Teresa.Ferguson@laquinta.com 


LA QUINTA HOLDINGS INC.
BALANCE SHEETS 
(in thousands, except share data)
 
         
     March 31, 2018   December 31, 2017
ASSETS            
Current Assets:            
Cash and cash equivalents   $ 113,486   $ 140,849
Accounts receivable, net of allowance for doubtful accounts of $4,169 and $4,296     74,368     66,183
Assets held for sale     4,787     8,706
Other current assets     14,198     12,015
Total Current Assets     206,839     227,753
Property and equipment, net of accumulated depreciation     2,511,783     2,506,523
Intangible assets, net of accumulated amortization     175,755     175,982
Other non-current assets     52,902     42,838
Total Non-Current Assets     2,740,440     2,725,343
Total Assets   $ 2,947,279   $ 2,953,096
LIABILITIES AND EQUITY            
Current Liabilities:            
Current portion of long-term debt   $ 17,514   $ 17,514
Accounts payable     65,895     48,757
Accrued expenses and other liabilities     64,126     59,587
Accrued payroll and employee benefits     42,832     52,113
Accrued real estate taxes     13,543     20,782
Total Current Liabilities     203,910     198,753
Long-term debt     1,667,476     1,670,447
Other long-term liabilities     44,036     21,833
Deferred tax liabilities     227,314     233,765
Total Liabilities     2,142,736     2,124,798
Commitments and Contingencies            
Equity:            
Preferred Stock, $0.01 par value; 100,000,000 shares authorized and none
  outstanding as of March 31, 2018 and December 31, 2017
  $   $
Common Stock, $0.01 par value; 2,000,000,000 shares authorized at
  March 31, 2018 and December 31, 2017; 132,475,086 shares issued
  and 117,342,020 shares outstanding as of March 31, 2018 and
  132,478,073 shares issued and 117,345,996 shares outstanding
  as of December 31, 2017
    1,325     1,325
Additional paid-in-capital     1,184,701     1,181,639
Accumulated deficit     (173,886     (144,041
Treasury stock at cost, 15,133,066 shares at March 31, 2018 and 15,132,077
  shares at December 31, 2017
    (212,479     (212,461
Accumulated other comprehensive income (loss)     2,308     (760
Noncontrolling interests     2,574     2,596
Total Equity     804,543     828,298
Total Liabilities and Equity   $ 2,947,279   $ 2,953,096


LA QUINTA HOLDINGS INC.
STATEMENTS OF OPERATIONS 
(in thousands)
 
     Three Months Ended March 31,
    2018     2017
    (unaudited)
REVENUES:              
Room revenues   $ 191,708     $ 199,744
Franchise and other fee-based revenues     25,896       23,978
Other hotel revenues     4,779       4,796
      222,383       228,518
Brand marketing fund revenues from franchised properties     6,397       5,754
Total Revenues     228,780       234,272
OPERATING EXPENSES:              
Direct lodging expenses     103,875       100,334
Depreciation and amortization     39,702       36,040
General and administrative expenses     41,835       35,438
Other lodging and operating expenses     15,323       14,060
Marketing, promotional and other
  advertising expenses
    17,804       18,536
(Gain) loss on sales     (498 )     138
      218,041       204,546
Brand marketing fund expenses from franchised properties     6,397       5,754
Total Operating Expenses     224,438       210,300
Operating Income     4,342       23,972
OTHER INCOME (EXPENSES):              
Interest expense, net     (21,456 )     (19,980
Other income (expense)     119       (24
Total Other Expenses, net     (21,337 )     (20,004
 (Loss) Income Before Income Taxes     (16,995 )     3,968
Income tax benefit (expense)     1,927       (2,290
NET (LOSS) INCOME     (15,068 )     1,678
Less: net income attributable to noncontrolling interests     (71 )     (89
Net (Loss) Income Attributable to La Quinta Holdings’
  Stockholders
  $ (15,139 )   $ 1,589

RECONCILIATIONS

The tables below provide a reconciliation of EBITDA and Total Adjusted EBITDA to Net (Loss) Income, a reconciliation of Adjusted Operating Income to Operating Income, and a reconciliation of Adjusted Net (Loss) Income and Adjusted (Loss) Earnings Per Share to Net (Loss) Income and (Loss) Earnings Per Share. The Company believes this financial information provides meaningful supplemental information. The Company further believes the presentation of Total Adjusted EBITDA, Adjusted Operating Income, Adjusted Net (Loss) Income and Adjusted (Loss) Earnings Per Share provides meaningful information because it excludes the impact of certain special items and/or certain items that are not expected to have an ongoing effect on its operations. This represents how management views the business and reviews its operating performance. It is also used by management when publicly providing the business outlook. 

“EBITDA” and “Total Adjusted EBITDA.” Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is a commonly used measure in many industries. The Company adjusts EBITDA when evaluating its performance because the Company believes that the adjustment for certain items, such as restructuring and acquisition transaction expenses, impairment charges related to long-lived assets, non-cash equity-based compensation, discontinued operations, and other items not indicative of ongoing operating performance, provides useful supplemental information to management and investors regarding its ongoing operating performance. The Company believes that EBITDA and Total Adjusted EBITDA provide useful information to investors about it and its financial condition and results of operations for the following reasons: (i) EBITDA and Total Adjusted EBITDA are among the measures used by the Company’s management team to evaluate its operating performance and make day-to-day operating decisions; and (ii) EBITDA and Total Adjusted EBITDA are frequently used by securities analysts, investors, lenders and other interested parties as a common performance measure to compare results or estimate valuations across companies in the Company’s industry.

EBITDA and Total Adjusted EBITDA are not recognized terms under GAAP, have limitations as analytical tools and should not be considered either in isolation or as a substitute for net (loss) income, cash flow or other methods of analyzing the Company’s results as reported under GAAP. Some of these limitations are:

  • EBITDA and Total Adjusted EBITDA do not reflect changes in, or cash requirements for, the Company’s working capital needs;

  • EBITDA and Total Adjusted EBITDA do not reflect the Company’s interest expense, or the cash requirements necessary to service interest or principal payments, on its indebtedness;

  • EBITDA and Total Adjusted EBITDA do not reflect the Company’s tax expense or the cash requirements to pay its taxes;

  • EBITDA and Total Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;

  • EBITDA and Total Adjusted EBITDA do not reflect the impact on earnings or changes resulting from matters that the Company considers not to be indicative of its future operations;

  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Total Adjusted EBITDA do not reflect any cash requirements for such replacements; and

  • other companies in the Company’s industry may calculate EBITDA and Total Adjusted EBITDA differently, limiting their usefulness as comparative measures.

Because of these limitations, EBITDA and Total Adjusted EBITDA should not be considered as discretionary cash available to the Company to reinvest in the growth of its business or as measures of cash that will be available to the Company to meet its obligations.

“Total Adjusted EBITDA margin” represents the ratio of Total Adjusted EBITDA to total revenues.

“Adjusted operating income (loss)” represents the Company’s reported operating income (loss), adjusted to exclude the impact of items not indicative of ongoing operating performance. Adjusted operating income (loss) is presented to provide additional perspective on underlying trends in the Company’s operating results.

“Adjusted Net (Loss) Income” and “Adjusted (Loss) Earnings Per Share” are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss), earnings per share, or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company’s definitions of Adjusted Net Income and Adjusted Earnings Per Share may not be comparable to similarly titled measures of other companies.

Adjusted Net (Loss) Income and Adjusted (Loss) Earnings Per Share are included to assist investors in performing meaningful comparisons of past, present and future operating results and as a means of highlighting the results of the Company’s ongoing operations in a comparable format.

TOTAL ADJUSTED EBITDA NON-GAAP RECONCILIATION  
(unaudited, in thousands)  
   
             
    Three Months
Ended March 31,
2018
    Three Months
Ended March 31,
2017
 
Operating income   $ 4,342     $ 23,972  
Interest expense, net     (21,456 )     (19,980 )
Other income (expense)     119       (24 )
Income tax benefit (expense)     1,927       (2,290 )
Income from noncontrolling interest     (71 )     (89 )
Net (Loss) Income  attributable to La Quinta
  Holdings’ Stockholders
    (15,139 )     1,589  
Interest expense     21,744       20,108  
Income tax (benefit) expense     (1,927 )     2,290  
Depreciation and amortization     39,893       36,257  
Noncontrolling interest     71       89  
EBITDA     44,642       60,333  
Gain (loss) on sales     (498 )     138  
Gain related to casualty disasters     (928 )     (1,928 )
Equity-based compensation     2,365       3,943  
Amortization of software service agreements     2,467       2,359  
Retention plan     2,484       2,550  
Reorganization costs     9,894       2,143  
Other losses, net     3,586       2,412  
Total Adjusted EBITDA   $ 64,012     $ 71,950  

 

SEGMENT REVENUES AND TOTAL ADJUSTED EBITDA RECONCILIATION
(unaudited, in thousands)
 
           
    Three Months
Ended March 31,
2018
    Three Months
Ended March 31,
2017
Revenues              
Owned Hotels   $ 197,555     $ 205,635
Franchise and management     27,180       26,714
Segment revenues     224,735       232,349
Other fee-based revenues from franchised properties     6,397       5,754
Corporate and other     28,206       28,783
Intersegment elimination     (30,558 )     (32,614
Total revenues   $ 228,780     $ 234,272
Total Adjusted EBITDA              
Owned Hotels   $ 49,247     $ 58,721
Franchise and management     27,180       26,714
Segment Adjusted EBITDA     76,427       85,435
Corporate and other     (12,415 )     (13,485
Total Adjusted EBITDA   $ 64,012     $ 71,950

 

 ADJUSTED OPERATING INCOME NON-GAAP RECONCILIATION
(unaudited, in thousands)
 
             
     Three Months Ended
March 31, 2018
    Three Months Ended
March 31, 2017
 
Operating income   $ 4,342     $ 23,972  
Retention plan     2,484       2,550  
Reorganization costs     9,894       2,143  
(Gain) loss on sales     (498 )     138  
Adjusted operating  income   $ 16,222     $ 28,803  

 

ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE
NON-GAAP RECONCILIATION
(unaudited, in thousands, except per share data)
 
           
    Three Months Ended March 31, 2018     Three Months Ended March 31, 2017
                               
    Net Income     Diluted
Earnings
Per
Share
    Net Income     Diluted
Earnings
Per
Share
Net (Loss) Income attributable to La Quinta
 Holdings’
Stockholders
  $ (15,139 )     (0.13 )   $ 1,589       0.01
Retention plan     2,484       0.02       2,550       0.03
Reorganization costs     9,894       0.09       2,143       0.02
(Gain) loss on sales     (498 )           138      
Tax impact of adjustments     (2,928 )     (0.03 )     (1,932 )     (0.02
Adjusted Net (Loss) Income attributable to La   Quinta Holdings’ Stockholders   $ (6,187 )     (0.05 )   $ 4,488     $ 0.04
Weighted average common shares outstanding, basic             116,324               115,936
Weighted average common shares outstanding, diluted             116,324               116,368

 

LA QUINTA HOLDINGS INC.
CERTAIN DEFINED TERMS

“ADR” or “average daily rate” means hotel room revenues divided by total number of rooms sold in a given period.

“comparable hotels” means hotels that: were active and operating in the Company’s system for at least one full calendar year as of the end of the applicable period and were active and operating as of January 1st of the previous year; except for (i) hotels that sustained substantial property damage or other business interruption, (ii) owned hotels that become subject to a purchase and sale agreement, or (iii) hotels in which comparable results are otherwise not available. Management uses comparable hotels as the basis upon which to evaluate ADR, occupancy, RevPAR and RevPAR Index on a system-wide basis and for each of the Company’s reportable segments.

“occupancy” means the total number of rooms sold in a given period divided by the total number of rooms available at a hotel or group of hotels.

“RevPAR” or “revenue per available room” means the product of the ADR charged and the average daily occupancy achieved.

“RevPAR Index” measures a hotel’s fair market share of its competitive set’s revenue per available room.

“system-wide” refers collectively to the Company’s owned, franchised and managed hotel portfolios.

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La Quinta Holdings Inc.