<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-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   MAR-27-1998
<EXCHANGE-RATE>                                1.00
<CASH>                                         7,376
<SECURITIES>                                   5,845<F1>
<RECEIVABLES>                                  12,881
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               26,102
<PP&E>                                         232,395
<DEPRECIATION>                                 (79,511)
<TOTAL-ASSETS>                                 178,986
<CURRENT-LIABILITIES>                          4,248
<BONDS>                                        319,522
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       0
<OTHER-SE>                                     (144,784)
<TOTAL-LIABILITY-AND-EQUITY>                   178,986
<SALES>                                        0
<TOTAL-REVENUES>                               16,654
<CGS>                                          0
<TOTAL-COSTS>                                  8,253
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             6,063
<INCOME-PRETAX>                                2,338
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            2,338
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   2,338
<EPS-PRIMARY>                                  0
<EPS-DILUTED>                                  0
<FN>
<F1> THIS IS OTHER ASSETS.
</FN>