<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE ANNUAL
REPORT 10-K AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CIK>                         0000357226
<NAME>                        POTOMAC HOTEL LIMITED PARTNERSHIP
<MULTIPLIER>                                   1,000
<CURRENCY>                                     U.S. DOLLAR
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                              DEC-31-1996
<PERIOD-START>                                 JAN-01-1996
<PERIOD-END>                                   DEC-31-1996
<EXCHANGE-RATE>                                1.00
<CASH>                                         9,735
<SECURITIES>                                   3,850<F1>
<RECEIVABLES>                                  10,870
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               24,455
<PP&E>                                         224,592
<DEPRECIATION>                                 (69,180)
<TOTAL-ASSETS>                                 179,867
<CURRENT-LIABILITIES>                          829
<BONDS>                                        323,335
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       0
<OTHER-SE>                                     (144,297)
<TOTAL-LIABILITY-AND-EQUITY>                   179,867
<SALES>                                        0
<TOTAL-REVENUES>                               46,696
<CGS>                                          0
<TOTAL-COSTS>                                  23,955
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             24,582
<INCOME-PRETAX>                                (1,841)
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            (1,841)
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (1,841)
<EPS-PRIMARY>                                  0
<EPS-DILUTED>                                  0
<FN>
<F1> THIS IS OTHER ASSETS.
</FN>