<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>                   9-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   SEP-11-1998
<EXCHANGE-RATE>                                1.00
<CASH>                                         10,577
<SECURITIES>                                   4,424 <F1>
<RECEIVABLES>                                  7,794
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               22,795
<PP&E>                                         238,278
<DEPRECIATION>                                 (83,401)
<TOTAL-ASSETS>                                 177,672
<CURRENT-LIABILITIES>                          3,338
<BONDS>                                        322,396
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       0
<OTHER-SE>                                     (148,062)
<TOTAL-LIABILITY-AND-EQUITY>                   177,672
<SALES>                                        0
<TOTAL-REVENUES>                               37,611
<CGS>                                          0
<TOTAL-COSTS>                                  21,078
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             17,473
<INCOME-PRETAX>                                (940)
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            0
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (940)
<EPS-PRIMARY>                                  0
<EPS-DILUTED>                                  0
<FN>
<F1>This is other assets
</FN>