<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>