La Quinta Holdings Inc. Accelerates Share Repurchase Program

  • Board of Directors Approves Share Repurchases of Up to $100 Million
  • Updates 2015 Financial Guidance

IRVING, Texas - Sept. 17, 2015 // PRNewswire // - La Quinta Holdings Inc. ("La Quinta" or the "Company") (NYSE: LQ) today announced that its Board of Directors has approved a program to repurchase an aggregate of up to $100 million of the Company's common stock, effective immediately. The Company had previously announced a $200 million program which would commence once the Company's net debt to Pro Forma Adjusted EBITDA ratio falls below 4.0 times. However, given recent market activity, the Company and the Board of Directors have decided to accelerate a portion of the program.

"Enhancing returns for our shareholders is an important focus for La Quinta and by returning capital to our shareholders, we are executing on this key strategy," said Keith A. Cline, interim President & Chief Executive Officer of La Quinta. "We believe investing in our stock at this time is a wise use of our capital and, as such, our Board of Directors has approved an acceleration of a portion of our previously announced share repurchase program so that we can take advantage of current market conditions."

The share repurchase of $100 million is expected to be funded by up to a $30 million draw on the Company's revolver, with the remainder from available cash. As a result, the Company expects that its net debt to Pro Forma Adjusted EBITDA ratio will remain above the Company's previously stated target of 4.0 times. The Company expects to execute the repurchases, depending on conditions, in open market transactions or in negotiated transactions off the market.

2015 Financial Guidance Update

The Company is also revising its 2015 financial guidance as a result of weaker than anticipated hotel demand during August and September and industry trends which indicate weaker demand for the portfolio for the remainder of the year. Additionally, the Company will incur a charge of approximately $11 million related to executive separation, which is excluded from Pro Forma Adjusted EBITDA.



Updated Guidance

Prior Guidance

RevPAR growth on a system-wide comparable hotel basis       

3.5 percent to 4.5 percent

4.5 percent to 5.5 percent


Pro Forma Adjusted EBITDA

$393 million to $400 million 

$398 million to $404 million


Interest expense

Approximately $87 million

Approximately $87 million


Franchise hotel openings

50 to 55

50 to 55


Weighted average shares of common stock outstanding

Approximately 131.7 million      

Approximately 131.7 million

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the proposed share repurchase program, including statements regarding the benefits of the program and the timing of the program, as well as statements regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

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 more than 875 properties representing over 87,000 rooms located in 47 US states, Canada, Mexico and Honduras. These properties operate under the La Quinta Inn & Suites™, La Quinta Inn™ and LQ HotelTM brands. La Quinta's team is committed to providing guests with a refreshing and engaging experience. For more information, please visit:

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 our website at In addition, you may automatically receive email alerts and other information about La Quinta when you enroll your email address by visiting the Email Notification section at

SOURCE La Quinta Holdings Inc.


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La Quinta Holdings Inc. (NYSE: LQ) is a leading owner, operator and franchisor of select-service hotels primarily serving the upper-midscale and midscale segments.


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