"We will not be testing an unknown structure, but instead a proven structure," Francis W. "Butch" Cash, La Quinta president and CEO, said in yesterday's conference call. La Quinta's usual spokesman, Temple Weiss, manager of investor relations, was traveling and unavailable for comment following the conference call.

In connection with the restructuring, La Quinta will take a one-time $400-million, non-cash charge. A stockholders meeting to vote on the proposal will be set for Q1 2002. The restructuring, however, carries the support of its largest shareholder, the Bass Family of Ft. Worth, which owns 10% of the REIT.

"This restructuring is about La Quinta's future," Cash explained. In a year to 18 months, La Quinta's non-qualifying revenue generators will exceed the mandated 5% parameters and thus make it ineligible for REIT standing.