La Quinta Holdings (LQ) Adj-EBITDA Rises 10%, Revs Up 7.4%

La Quinta Holdings (NYSE: LQ) reported Q1 Adjusted EBITDA for the first quarter increased 9.8 percent from the prior year to $80.6 million. Pro forma net income attributable to the Company for the first quarter was $7.7 million vs. $3.3 million for the prior year. Achieved RevPAR growth for the first quarter on a system wide comparable hotel basis of 6.7 percent to $50.44. Pro forma revenue for the quarter came in at $227.7 million, versus $212.05 million reported last year.

Wayne B. Goldberg, President & Chief Executive Officer of La Quinta, said, "Our business is performing well. Our strong first quarter results were driven by our refreshed portfolio and repositioned brand which together delivered continued RevPAR growth, Adjusted EBITDA growth, and Adjusted EBITDA margin expansion. Our hotels continued to achieve RevPAR index gains, up 105 basis points over the prior year. During the quarter, we opened 12 new franchise hotels and we continue to maintain a robust pipeline of 186 hotels totaling over 15,000 rooms."

Mr. Goldberg continued, "Furthermore, subsequent to the end of the quarter, we completed our IPO and debt refinancing, which marked an important step in La Quinta's evolution. With a capital light franchise growth strategy and a tailwind from the ongoing lodging industry recovery, we continue to be well-positioned. We will further reduce our outstanding debt beginning in the second quarter with proceeds from our strong cash generation. We expect that these efforts will result in a stronger balance sheet in the coming quarters which will further support our ability to drive earnings growth and shareholder value."

Outlook Based upon management's current estimates, the Company is introducing its guidance for full year 2014:

• RevPAR, on a system-wide comparable hotel basis, is expected to increase between 5.5 and 7 percent as compared to 2013.
• Pro forma Adjusted EBITDA is expected to be between $362 million and $368 million.
• Capital expenditures are expected to be approximately $69 million to $77 million.
• Franchise hotel openings are expected to be between 45 and 50.

For earnings history and earnings-related data on La Quinta Holdings (LQ) click here.

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