SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K



                                 CURRENT REPORT

          ------------------------------------------------------------

                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934



                Date of Report (Date of earliest event reported):
                                  June 30, 1998



                        CLARION COMMERCIAL HOLDINGS, INC.

             (Exact name of registrant as specified in its charter)


                                    Maryland

                          (State or other jurisdiction
                                of incorporation)

                                    001-14167

                                (Commission File
                                     Number)

                                    13-398895

                                (I.R.S. Employer
                             Identification Number)


                  335 Madison Avenue, New York, New York 10017
                (Address of principal executive offices including
                                    zip code)

                                 (212) 883-2500
                         (Registrant's telephone number
                              including area code)






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Item 5.  Other Events

         On  June  30,  1998,  Clarion  Commercial   Holdings,   Inc.("Clarion")
announced  Clarion's  decision to initiate a program to repurchase shares of its
Common  Stock,  par value  $.001 per  share.  The news  release  announcing  the
repurchase  program,  dated June 30, 1998, is incorporated by reference  herein,
and is attached and filed herewith as Exhibit 99.3.


Item 7.  Financial Statements and Exhibits

         (c)      Exhibits

                  The following exhibit is filed as part of this report:

                  (99.3)   News release of Clarion Commercial Holdings, Inc.
                           dated June 30, 1998.






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                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                        CLARION COMMERCIAL HOLDINGS, INC.
                                                     (Registrant)



Date:    July 7, 1998               By: /s/ Daniel Heflin
                                       ----------------------------------------
                                            Daniel Heflin
                                            Chief Executive Officer 
                                              and President






                                  EXHIBIT INDEX

Exhibit
Number   Description

99.3     The news release of Clarion Commercial Holdings, Inc.
         dated June 30, 1998.