<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 1996 AND CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0001012624 <NAME> INTERSTATE HOTELS CO. <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-END> SEP-30-1996 <CASH> 24,300 <SECURITIES> 0 <RECEIVABLES> 23,582 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 57,732 <PP&E> 536,654 <DEPRECIATION> (39,931) <TOTAL-ASSETS> 591,817 <CURRENT-LIABILITIES> 46,654 <BONDS> 294,291 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 287 <OTHER-SE> 247,766 <TOTAL-LIABILITY-AND-EQUITY> 248,053 <SALES> 0 <TOTAL-REVENUES> 93,771 <CGS> 0 <TOTAL-COSTS> 78,337 <OTHER-EXPENSES> 329 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 5,315 <INCOME-PRETAX> 10,448 <INCOME-TAX> 11,145 <INCOME-CONTINUING> (697) <DISCONTINUED> 0 <EXTRAORDINARY> (7,643) <CHANGES> 0 <NET-INCOME> (8,340) <EPS-PRIMARY> 0 <EPS-DILUTED> 0<F1> <FN> <F1> The Company believes historical earnings per share are not meaningful due to predecessor entities being organized as S corporations, partnerships, and limited liability companies. Rather, pro forma earnings per share are more meaningful measure of the Company's results of operations for the period presented. Pro forma earnings per share for the nine months ended September 30, 1996, and 1995 were $.70 and $.42, respectively. </FN>