<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 
QUARTERLY REPORT 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
<CURRENCY>                                     U.S. DOLLAR
       
                             
<PERIOD-TYPE>                   3-MOS                   
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   MAR-28-1997
<EXCHANGE-RATE>                                1.00
<CASH>                                         7,683
<SECURITIES>                                   4,616<F1>
<RECEIVABLES>                                  14,071
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               26,370
<PP&E>                                         226,098
<DEPRECIATION>                                 (70,443)
<TOTAL-ASSETS>                                 182,025
<CURRENT-LIABILITIES>                          4,005
<BONDS>                                        319,277
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       0
<OTHER-SE>                                     (141,257)
<TOTAL-LIABILITY-AND-EQUITY>                   182,025
<SALES>                                        0
<TOTAL-REVENUES>                               16,091
<CGS>                                          0
<TOTAL-COSTS>                                  7,206
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             5,845
<INCOME-PRETAX>                                3,040
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            3,040
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   3,040
<EPS-PRIMARY>                                  0
<EPS-DILUTED>                                  0

<FN>
<F1>THIS IS OTHER ASSETS.
</FN>