<ARTICLE>                     5
<LEGEND>
     This schedule contains summary financial information extracted from the
     third quarter Form 10-Q and is qualified in its entirety by reference
     to such financial statements.
</LEGEND>
<CIK>                         0000357226
<NAME>                        POTOMAC HOTEL LIMITED PARTNERSHIP
<MULTIPLIER>                                   1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                         DEC-31-1996
<PERIOD-START>                            JAN-01-1996
<PERIOD-END>                              SEP-06-1996
<CASH>                                          9,251
<SECURITIES>                                    5,209<F1>
<RECEIVABLES>                                  12,582
<ALLOWANCES>                                        0
<INVENTORY>                                         0
<CURRENT-ASSETS>                               27,042
<PP&E>                                        222,186
<DEPRECIATION>                                (69,828)
<TOTAL-ASSETS>                                179,400
<CURRENT-LIABILITIES>                           3,260
<BONDS>                                       319,846
<PREFERRED-MANDATORY>                               0
<PREFERRED>                                         0
<COMMON>                                            0
<OTHER-SE>                                   (143,706)
<TOTAL-LIABILITY-AND-EQUITY>                  179,400
<SALES>                                             0
<TOTAL-REVENUES>                               32,267
<CGS>                                               0
<TOTAL-COSTS>                                  16,665
<OTHER-EXPENSES>                                    0
<LOSS-PROVISION>                                    0
<INTEREST-EXPENSE>                             16,852
<INCOME-PRETAX>                                (1,250)
<INCOME-TAX>                                        0
<INCOME-CONTINUING>                            (1,250)
<DISCONTINUED>                                      0
<EXTRAORDINARY>                                     0
<CHANGES>                                           0
<NET-INCOME>                                   (1,250)
<EPS-PRIMARY>                                       0
<EPS-DILUTED>                                       0
<FN>
<F1>THIS IS OTHER ASSETS
</FN>