<ARTICLE> 5
<CIK> 0000911217
<NAME> ESSEX HOSPITALITY ASSOCIATES III L.P.
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               JUN-30-1997
<CASH>                                              61
<SECURITIES>                                         0
<RECEIVABLES>                                        0
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0<F1>
<PP&E>                                          11,202
<DEPRECIATION>                                     878
<TOTAL-ASSETS>                                  11,072
<CURRENT-LIABILITIES>                                0
<BONDS>                                         10,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                         734<F2>
<TOTAL-LIABILITY-AND-EQUITY>                    11,072
<SALES>                                          1,124
<TOTAL-REVENUES>                                 1,124
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                                   900
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 250
<INCOME-PRETAX>                                   (26)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                               (26)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                      (26)
<EPS-PRIMARY>                                      (6)
<EPS-DILUTED>                                      (6)<F3>
<FN>
<F1>UNCLASSIFIED BALANCE SHEET USED
<F2>EQUITY IS PARTNERS' CAPITAL
<F3>ENTITY IS A PARTNERSHIP, EPS IS LOSS PER LIMITED PARTNERSHIP UNIT
</FN>