<TABLE> <S> <C>
                                                             
                                                                   
<ARTICLE>                          5                                            
<CIK>                              0000911217
<NAME>                             ESSEX HOSPITALITY ASSOCIATES III L.P.
<MULTIPLIER>                       1,000
                                                                   
<S>                             <C>                                
<PERIOD-TYPE>                      3-MOS         
<FISCAL-YEAR-END>                  DEC-31-1997                                  
<PERIOD-END>                       MAR-31-1998                                  
<CASH>                                 10                                       
<SECURITIES>                            0                                       
<RECEIVABLES>                           0                                       
<ALLOWANCES>                            0                                       
<INVENTORY>                             0                                       
<CURRENT-ASSETS>                        0                                     
<FN>
<F1>                               UNCLASSIFIED BALANCE SHEET USED
</FN>
<PP&E>                             11,222                                                     
<DEPRECIATION>                      1,193                                      
<TOTAL-ASSETS>                     10,508                                       
<CURRENT-LIABILITIES>                 400                                
<BONDS>                            10,000                                       
<PREFERRED-MANDATORY>                   0                                
<PREFERRED>                             0                                       
<COMMON>                                0
<OTHER-SE>                            108                                       
<FN>
<F2>                               EQUITY IS PARTNERS' CAPITAL
</FN>
<TOTAL-LIABILITY-AND-EQUITY>       10,508                         
<SALES>                               766                                       
<TOTAL-REVENUES>                      807                                    
<CGS>                                   0                                       
<TOTAL-COSTS>                           0                                       
<OTHER-EXPENSES>                      718                                     
<LOSS-PROVISION>                        0                                     
<INTEREST-EXPENSE>                    250                                  
<INCOME-PRETAX>                      (220)                                      
<INCOME-TAX>                            0                                      
<INCOME-CONTINUING>                  (220)                                  
<DISCONTINUED>                          0                                      
<EXTRAORDINARY>                         0                                    
<CHANGES>                               0                                       
<NET-INCOME>                         (220)                                      
<EPS-PRIMARY>                        ( 55)                                      
<EPS-DILUTED>                        ( 55)                                      
<FN>
<F3>                               ENTITY IS A PARTNERSHIP, EPS IS LOSS PER 
                                   LIMITED PARTNERSHIP UNIT
</FN>
                                                     
                                                     

</TABLE>