FORM 10-Q
 
 SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C.   20549
 
 (Mark One)
 
 [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
      15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 For the quarterly period ended September 27, 1996
 
                       OR
                        
              TRANSITION REPORT PURSUANT TO SECTION 13 OR
              15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 For the transition period from ___________________ to
_________________________________
 
 Commission file number 033-73340-01
 
 
          John Q. Hammons Hotels, Inc.
 (Exact name of registrants as specified in their charters)
                        
                         
          Delaware                                         43-1695093
       (State or other jurisdiction of incorporation     (IRS Employer
             or organization)                         (Identification Nos.)
 
                        
           300 John Q. Hammons Parkway
                    Suite 900
             Springfield, MO  65806
    (Address of principal executive offices)
                        
                 (417) 864-4300
 (Registrants' telephone number, including area code)
                        
                         
 Indicate by check mark whether the registrants (1) have filed all reports
  required to be filed by Section 13 or 15(d) of the Securities Exchange Act
  of 1934 during the preceding 12 months (or for such shorter period that
  the registrants were required to file such reports, and (2) have been
  subject to such filing requirements for the past 90 days. 
  Registrants have been required to file reports since November 23, 1994.
 
 
 Yes __X__     No ______
 
 
 
 
 
 
 
 
 
                   JOHN Q. HAMMONS HOTELS, INC.
 
                            INDEX
 
                                                                
 
 PART I.   FINANCIAL INFORMATION
 
                                                                         PAGE
 Item 1.  Financial Statements
              
     Consolidated Balance Sheets at September 27, 1996 (unaudited)
     and December 29, 1995  (audited)  ................................     3
         
     Consolidated Statements of Income for the three  and
      nine months ended September 27, 1996 (unaudited)
      and  September 29, 1995 (unaudited...............................     5 
 
     Consolidated Statements of Changes in Minority Interest
     and Stockholders Equity for the period December 29, 1995
     to September 27, 1996 (unaudited).................................     6
 
     Consolidated Statements of Cash Flows for the nine
     months ended  September 27, 1996 (unaudited) and
     September 29, 1995  (unaudited).....................................   7
 
     Notes to Consolidated Financial Statements ...... ...................  8
 
 Item 2.  Management's Discussion and Analysis of Financial 
    Condition and  Results of Operations..................................  9
 
 PART II.    OTHER INFORMATION AND SIGNATURES
 
 Item 1.  Legal Proceedings............................................    15
 
 Item 6.  Reports on Form 8-K........................................      15
 
                 Signatures .........................................      16
 
 PART I - FINANCIAL INFORMATION
Item 1. Financial Statements

                    JOHN Q. HAMMONS HOTELS, INC.
                         AND COMPANIES                      
                    CONSOLIDATED BALANCE SHEETS             
                         (000's omitted)
<TABLE>
<CAPTION>
                                   ASSETS
                                       September 27, 1996   December 29,1995
                                         (Unaudited)           (Audited)
<S>                                        <C>                 <C>
CASH AND EQUIVALENTS                       $28,043             $41,777
MARKETABLE SECURITIES                       11,638              26,574 
RECEIVABLES
   Trade, less allowance for doubtful
    accounts of $157                         6,743               4,852 
    Construction reimbursements and
     management fees                           182               2,762 

INVENTORIES                                    983               1,110 
PREPAID EXPENSES AND OTHER                     254               1,124 
Total current assets                        47,843              78,199 

PROPERTY AND EQUIPMENT, at cost
    Land and improvements                   28,888              27,974 
    Buildings and improvements             410,979             399,746 
    Furniture, fixtures and equipment      147,490             149,535 
    Construction in progress                95,430              27,395 
                                           682,787             604,650 
Less-accumulated depreciation and
     and amortization                     (171,344)           (169,811)
                                           511,443             434,839 
  DEFERRED FINANCING COSTS,
     FRANCHISE FEES AND 
     OTHER, net                             27,636              29,333
                                          $586,922            $542,371
</TABLE>
See Notes to Consolidated Financial Statements


                             JOHN Q. HAMMONS HOTELS, INC.
                                     AND COMPANIES                 
                              CONSOLIDATED BALANCE SHEETS             
                                    (000's omitted)
<TABLE>
<CAPTION>
                               LIABILITIES AND EQUITY

                                      September 27, 1996     December 29,1995
                 LIABILITIES:           (Unaudited)             (Audited)

<S>                                        <C>                   <C>
Current portion of long-term debt          $11,876               $7,981 
Accounts payable                            11,741                8,382 
Accrued expenses
    Payroll and related benefits             4,633                3,800 
    Sales and property taxes                 7,736                7,012 
    Insurance                                9,304                8,446 
    Interest                                 7,651               12,171 
    Utilities, franchise fees, and other     5,883                4,849 
            Total current liabilities       58,824               52,641 
Long-term debt                             477,283              450,113 
Other obligations and deferred revenue       5,117                5,579 
Deferred income taxes                            1                    1 

Total liabilities                          541,225              508,334 

COMMITMENTS AND CONTINGENCIES
  
MINORITY INTEREST OF HOLDERS OF LIMITED
PARTNER UNITS                               30,741               23,082 

STOCKHOLDERS EQUITY 
Preferred stock, $.01 par value, 2,000,000 shares                       
   authorized,  none outstanding             --                     --     

 Class A common stock, $.01 par value, 40,000,000 shares       
   authorized, 6,042,000 shares issued and
   outstanding                                  60                   60  

  Class B common stock, $.01 par value, 1,000,000 shares        
    authorized, 294,100 shares issued and
    outstanding                                  3                    3 
 Paid-in capital                            96,373               96,373 

Retained deficit, net                      (81,480)             (85,481)
Total equity                                14,956               10,955  
                                          $586,922             $542,371 
</TABLE>
                    See Notes to Consolidated Financial Statements


                              JOHN Q. HAMMONS HOTELS, INC.
                                    AND COMPANIES                 
                            CONSOLIDATED STATEMENTS OF INCOME            
                                    (000's omitted)
<TABLE>
<CAPTION>
                           Three Months Ended          Nine Months Ended
                   Sept. 27, 1996 Sept. 29, 1995 Sept. 27, 1996 Sept. 29, 1995
                     (Unaudited)   (Unaudited)    (Unaudited)     (Unaudited)

REVENUES:
 <S>                      <C>            <C>           <C>            <C>
 Rooms                    $45,563        $40,116       $129,920       $112,771
 Food and beverage         17,308         16,251         56,504         49,204
 Meeting room rental
     and other              4,458          3,869         13,868         11,203
Total revenues             67,329         60,236        200,292        173,178
OPERATING EXPENSES:
  Direct operating costs and expenses-
    Rooms                  10,953         10,163         32,073         28,465
    Food and beverage      13,107         13,103         41,858         38,562
    Other                     704            644          2,154          1,799
   General, administrative and
          sales expense    18,463         16,533         56,255         47.340
  Repairs and maintenance   2,890          2,555          8,526          7,342
  Depreciation and
      amortization          6,310          4,565         18,256         11,659
  Total operating expenses 52,427         47,563        159,122        135,167

INCOME FROM
 OPERATIONS                14,902         12,673         41,170         38,011

OTHER INCOME (EXPENSE)
  Interest income             570            840          1,790          3,442
  Interest expense and 
    amortization of deferred  
    financing fees         (9,109)        (7,124)       (28,538)       (22,572)

INCOME BEFORE MINORITY INTEREST   
 AND PROVISION FOR 
 INCOME TAXES               6,363          6,389         14,422         18,881

 Minority interest in earnings
      of partnership       (4,562)        (4,580)       (10,339)       (13,536)


INCOME BEFORE PROVISION FOR    
INCOME TAXES                1,801          1,809          4,083          5,345 
  Provision for income taxes  (37)           (37)           (82)          (107)

NET INCOME                 $1,764         $1,772         $4,001         $5,238

UNAUDITED EARNINGS PER SHARE
Per share net income allocable
 to the Company              $0.28         $0.28          $0.63          $0.83
</TABLE>
                    See Notes to Consolidated Financial Statements




                    JOHN Q. HAMMONS HOTELS, INC.
                         AND COMPANIES                                         
         CONSOLIDATED STATEMENTS OF CHANGES IN MINORITY INTEREST
                    AND STOCKHOLDERS EQUITY            
                         (000's omitted)
<TABLE>
<CAPTION>
                                             
                                 STOCKHOLDERS EQUITY              
                Minority    Class A      Class B  Paid-In   Company
                Interest    Common       Common   Capital   Retained     Total
                             Stock       Stock              Deficit

BALANCE, December 29, 1995
<S>              <C>              <C>        <C>  <C>      <C>         <C>
 (audited)       $23,082          $60        $3   $96,373  ($85,481)   $10,955


Distribution for
  income taxes    (2,680)          --         --     --       --        --      

Net income allocable to
     the Company     --            --         --     --       4,001      4,001



Minority interest in earnings
   of partnership 10,339           --         --     --        --         --  

BALANCE, September 27, 1996
(unaudited)      $30,741          $60        $3   $96,373  ($81,480)   $14,956
</TABLE>

                         See Notes to Consolidated Financial Statements

                         JOHN Q. HAMMONS HOTELS, INC.
                              AND COMPANIES                 
                      CONSOLIDATED STATEMENTS OF CASH FLOW              
                                (000's omitted)
<TABLE>
<CAPTION>
                                                 Nine Months Ended
                                      September 27, 1996    September 29,1995
CASH FLOWS FROM OPERATING ACTIVITIES:     (Unaudited)           (Audited)

<S>                                            <C>                  <C>
Net income                                     $4,001               $5,238 

Adjustments to reconcile net income to cash provided by
 operating activities-
    Depreciation, amortization, and
        loan cost amortization                 19,596               12,169 
    Minority interest in earnings of
        the partnership                        10,339               13,536 
Changes in certain assets and liabilities
  Receivables                                     689               (1,040)
  Inventories                                     127                  (29)
  Prepaid expenses and other                      870                  909 
  Accounts payable                              3,359               (2,592)
Accrued expenses                               (1,071)              (3,302)
Other obligations and deferred revenue           (462)               1,652 
 Net cash provided by operating activities     37,448               26,541 

CASH FLOWS FROM INVESTING ACTIVITIES
  Additions to property and equipment, net    (92,742)             (92,733)
  Buy-out of minority interest                   --                 (1,200)
  Franchise fees and other                     (1,761)               2,220 
  Sale of marketable securities                14,936               64,608 
     Net cash used in investing activities    (79,567)             (27,105)

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings                     32,133               10,690 
  Payments of notes payable to affiliates        --                   (547)
  Repayments of debt                           (1,068)              (3,037)
  Distributions                                (2,680)              (4,697)
 Net cash provided by financing activities     28,385                2,409 

Increase (decrease) in cash and equivalents   (13,734)               1,845 

CASH AND EQUIVALENTS, beginning of period      41,777                9,712 
CASH AND EQUIVALENTS, end of period           $28,043              $11,557 


SUPPLEMENTAL  DISCLOSURE  OF  CASH FLOW INFORMATION

CASH PAID FOR INTEREST,
 net of amounts capitalized                   $31,671              $28,365 
</TABLE>
                    See Notes to Consolidated Financial Statements



JOHN Q. HAMMONS HOTELS,  INC.  AND COMPANIES            
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1.  ENTITY MATTERS

The accompanying consolidated financial statements include the
accounts of John Q. Hammons Hotels, Inc. and John Q. Hammons
Hotels, L.P. and subsidiaries.  (Collectively the Company or, as the
context may require John Q. Hammons Hotels, Inc. only.)

The Company was formed in September 1994 and had no
operations or assets prior to its initial public offering of 6,042,000
shares of Class A common stock at $16.50 per share
consummated on November 23, 1994.  Immediately prior to the
initial public offering, Mr. John Q. Hammons (JQH) contributed
approximately $5 million in cash to the Company in exchange for
294,100 shares of Class B common stock (which represents
approximately  72% of the voting control of the Company).  The
Company contributed the approximate $96 million of net proceeds
from the Class A and Class B common stock offerings to John Q.
Hammons Hotels, L.P. (the "Partnership") in exchange for a 
28.31% general partnership interest.

All significant balances and transactions between the entities and
properties have been eliminated.

2. GENERAL

The accompanying unaudited interim financial statements have
been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission for reporting on Form 10-Q. 
Accordingly, certain information and footnotes required by
generally accepted accounting principles for complete financial
statements have been omitted.  These interim statements should
be read in conjunction with the financial statements and notes
thereto included in the Company's Form 10-K for the year ended
December 29, 1995 which included financial statements for the
years ended  December 29, 1995  and December 30, 1994.


               
The information contained herein reflects all normal and recurring
adjustments which, in the opinion of management, are necessary
for  a fair presentation of the results of operations and financial
position for the interim periods.


The Company considers all operating cash accounts and money
market investments with an original maturity of three months or
less to be cash equivalents.    Marketable securities  consist of
available-for-sale commercial  paper and government agency
obligations which mature or will  be available for use in operations
in 1996.  These securities are valued at current market value,
which approximates cost. 

The provision for income taxes was determined using an effective
income tax rate of  2%.  The lower effective tax rate is due to
special allocations of tax depreciation to the Company in excess of
its proportionate share of the depreciation related to the book value
of the Partnership's net assets.




Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
General
The following discussion and analysis addresses results of
operations for the three and nine months ended September 27,
1996  and September 29, 1995.   

Total revenues increased to $67.3 million in the 1996 Three
Months from $60.2 million in the 1995 Three Months, an increase
of $7.1 million or 11.8%.  Of the total revenues reported in the
1996 Three Months, 67.7% were revenues from rooms, 25.7%
were revenues from food and beverage, and 6.6% were revenues
from meeting room rental and other, compared with 66.6%, 27.0%,
and 6.4%, respectively, during the 1995 Three Months.

Rooms revenues increased to $45.6 million in the 1996 Three
Months from $40.1 million in the 1995 Three Months, an increase
of $5.5 million or 13.6% due to increases in the  total number of
available rooms.  Average room rates of Mature Hotels (open more
than one year) increased to $74.83 in the 1996 Three Months from
$72.11 in the 1995 Three Months, an increase of $2.72 or 3.8%. 
Occupancy of Mature Hotels decreased to 70.3% in the 1996
Three Months from 73.8% in the 1995 Three Months, a decrease
of 3.5 percentage points.  The lower occupancy was primarily due
to the increased number of  limited service rooms opening in the
immediate market of some of the Company's owned hotels.

Food and beverage revenues increased to $17.3 million in the
1996 Three Months from $16.3 million in the 1995 Three Months,
an increase of $1.0 million or 6.5%.  The increase in revenues was
attributable to the opening of additional full service hotels, opening
of new restaurant concepts in the existing hotels, and menu pricing
adjustments.

Meeting room rental and other revenues increased to $4.5 million
in the 1996 Three Months from $3.9 million in the 1995 Three
Months, an increase of $0.6 million or 15.2%. The increase was
attributable to increased group business requiring meeting space
as well as increased pricing.

Rooms operating expenses increased to $11.0 million in the 1996
Three Months from $10.2 million in the 1995 Three Months, an
increase of $0.8 million or 7.8%.  This expense represented 24.0%
of rooms revenues in the 1996 Three Month period and 25.3% in
the 1995 Three Month period.


Food and beverage operating expenses were  $13.1 million in the
1996 and 1995 Three Months.  As a percentage of food revenue
these expenses decreased to 75.7% in the 1996 Three Months
from 80.6% in the 1995 Three Months.

Other operating expenses increased to $0.7 million in the 1996
Three Months from $0.6 million in the 1995 Three Months, an
increase of $0.1 million or 9.3%.

General, administrative and sales expenses increased to $18.5
million in the 1996 Three Months from $16.5 million in the 1995
Three Months, an increase of $2.0 million or 11.7%.  The increased
expenses were a result of expenses incurred on the six hotels
opened during the second half of 1995.

Repairs and maintenance expenses increased to $2.9 million in the
1996 Three Months from $2.6 million in the 1995 Three Months, an
increase of $0.3 million or 13.1%.  The increase was a result of the
Company's increased number of hotels open.


Depreciation and amortization expenses increased to $6.3 million
in the 1996 Three Months from $4.6 million in the 1995 Three
Months, an increase of $1.7 million or 38.2%.  These expenses
represented 9.4% of total revenues in the 1996 Three Months and
7.6% of total revenues in the 1995 Three Months.  The increase
was primarily due to the opening of six new hotels in the second
half of 1995.


Income from Operations increased to $14.9 million in the 1996
Three Months from $12.7 million in the 1995 Three Months, an
increase of $2.2 million or 17.6%.  The increase was due primarily
to the higher amount of total revenue offset in part by higher
depreciation from new hotels open during the 1996 quarter.

Interest income decreased to $0.6 million in the 1996 Three
Months from $0.8 million in the 1995 Three Months, a decrease of
$0.2 million or 32.1%.  The decrease was attributable to  lower 
balances in cash and equivalents and in marketable securities
because of amounts utilized for new construction.

Interest expense and amortization of deferred financing fees 
increased to $9.1 million in the 1996 Three Months from $7.1
million in the 1995 Three Months, an increase of $2.0 million or
27.9%.  As a percentage of total revenues, this expense increased
to 13.5% in the 1996 Three Months from 11.8% in the 1995 Three
Months. 

Income before minority interest and  provision for income taxes
was $6.4 million in the 1996 and 1995 Three Months.  As a
percentage of total revenues, it decreased to 9.5% in the 1996
Three Months from 10.6% in the 1995 Three Months.  The
decrease was due primarily to an increase in depreciation and
interest expense associated with the opening of six hotels in 1995
that have not reached normal occupancy levels.




NINE MONTHS

Total revenues increased to $200.3 million in the 1996 Nine
Months from $173.2 million in the 1995 Nine Months, an increase
of $27.1 million or 15.7%.  Of the total revenues reported in the
1996 Nine Months, 64.9% were revenues from rooms, 28.2% were
revenues from food and beverage, and 6.9% were revenues from
meeting room rental and other, compared with 65.1%,  28.4%, and
6.5%, respectively, during the 1995 Nine Months.

Rooms revenues increased to $129.9 million in the 1996 Nine
Months from $112.8 million in the 1995 Nine Months, an increase
of $17.1 million or 15.2% as a result of increases in average room
rates  and total number of available rooms.  Average room rates of
Mature Hotels increased to $74.58 in the 1996 Nine Months from
$71.38 in the 1995 Nine Months, an increase of $3.20 or 4.5%. 
Occupancy of Mature Hotels decreased to 68.3% in the 1996 Nine
Months from 71.1% in the 1995 Nine Months, a decrease of 2.8
percentage points.  The lower occupancy was primarily due to the
increased number of limited service hotels open in the immediate
market area of  some of the Company's owned hotels.

Food and beverage revenues increased to $56.5 million in the
1996 Nine Months from $49.2 million in the 1995 Nine Months, an
increase of $7.3 million or 14.8%.  The increase in revenues was
attributable to the opening of additional full service hotels, opening
of new restaurant concepts in the existing hotels, and menu pricing
adjustments.

Meeting room rental and other revenues increased to $13.9 million
in the 1996 Nine Months from $11.2 million in the 1995 Nine
Months, an increase of $2.7 million or 23.8%. The increase was
attributable to increased group business requiring meeting space
as well as increased pricing.

Rooms operating expenses increased to $32.1 million in the 1996
Nine Months from $28.5 million in the 1995 Nine Months, an
increase of $3.6 million or 12.7%.  This expense represented
24.7% of rooms revenues in the 1996 Nine Month period and
25.2% in the 1995 Nine Month period.

Food and beverage operating expenses increased to $41.9 million
in the 1996 Nine Months from $38.6 million in the 1995 Nine
Months, an increase of $3.3 million or 8.5%.

Other operating expenses increased to $2.2 million in the 1996
Nine Months from $1.8 million in the 1995 Nine Months, an
increase of $0.4 million or 19.7%.

General, administrative and sales expenses increased to $56.3
million in the 1996 Nine Months from $47.3 million in the 1995 Nine
Months, an increase of $9.0 million or 18.8%.  The increased
expenses were a result of expenses incurred on the six hotels
opened during the second half of 1995.

Repairs and maintenance expenses increased to $8.5 million in the
1996 Nine Months from $7.3 million in the 1995 Nine Months, an
increase of $1.2 million or 16.1%.  The increase was a result of the
Company's increased number of hotels open.

Depreciation and amortization expenses increased to $18.3 million
in the 1996 Nine Months from $11.7 million in the 1995 Nine
Months, an increase of $6.6 million or 56.6%.  These expenses
represented 9.1% of total revenues in the 1996 Nine Months and
6.7% of total revenues in the first Nine Months of 1995.  The
increase was primarily due to the opening of six new hotels in the
second half of 1995.


Income from Operations increased to $41.2 million in the 1996
Nine Months from $38.0 million in the 1995 Nine Months, an
increase of $3.2 million or 8.3%.  The increase was due primarily
to the higher amount of total revenue offset in part by higher
depreciation  from new hotels open during the first Nine Months of
1996.

Interest income decreased to $1.8 million in the 1996 Nine Months
from $3.4 million in the 1995 Nine Months, a decrease of $1.6
million or 48.0%.  The decrease was attributable to  lower 
balances in cash and equivalents and in marketable securities as
a result of amounts spent for new construction.

Interest expense and amortization of deferred financing fees 
increased to $28.5 million in the 1996 Nine Months from $22.6
million in the 1995 Nine Months, an increase of $5.9 million or
26.4%.  As a percentage of total revenues, this expense increased
to 14.2% in the 1996 Nine Months from 13.0% in the 1995 Nine
Months. 

Income before minority interest and provision for income taxes
decreased to $14.4 million in the 1996 Nine Months from $18.9
million in the 1995 Nine Months, a decrease of $4.5 million or
23.6%.  As a percentage of total revenues, it decreased to 7.2% in
the 1996 Nine Months from 10.9% in the 1995 Nine Months.  The
decrease was due primarily to an increase in depreciation and
interest expense associated with the opening of six hotels in 1995
that have not reached normal occupancy levels.



Liquidity and Capital Resources

In general, the Company has financed its operations through
internal cash flow, loans from financial institutions, the issuance of
public debt and equity  and the issuance of industrial revenue
bonds.    The Company in the future may obtain mortgage
financing  secured by unencumbered  hotels  and construction in
progress to provide additional liquidity, if necessary.  The
Company's principal uses of cash are to pay operating expenses,
to service debt, to fund capital expenditures, to fund new hotel
development and to make partnership distributions.
 
At September  27, 1996, the Company had $28.0 million of cash
and  equivalents and also had $11.6 million of marketable
securities, which represented investment of a portion of the
proceeds of the Note Offerings and Common Stock Offering.  Such
investment is expected to be used for development of new hotels
and other working capital requirements of the Company.

Net cash  provided by operating activities was  $37.4 million for the 
first Nine Months of 1996  compared to  $ 26.5 million at the end
of the first Nine Months of 1995, an increase of  $ 10.9  million.  A
majority of the increase was due to among others, increases in
depreciation and amortization, fewer receivables due from
construction reimbursements and increases in construction
payables at September 27, 1996. 

The Company incurred net capital expenditures of $92.7 million
during the first Nine Months  of 1996 and 1995.  Capital
expenditures  include expenditures for development of new hotels
and capital improvements on existing hotel properties.  During the
remainder of 1996 the Company expects capital expenditures to
total approximately $56 million, representing  $ 6 million for capital
improvements on existing hotels and  $50 million for continued new
hotel development.

The Company currently has eight  hotels under construction.   The
Company estimates that building and pre-opening costs of the
eight hotels will require aggregate funding of approximately $196
million from the Company (net of $84 million included in
construction in progress at September 27, 1996). 
                              
In addition to the capital expenditures for the hotels under
construction,  the Company is at various stages in other new hotel
development.  Capital requirements for the new hotels under
development  are expected to be provided by  (i)  mortgage
financing secured by the Owned Hotels which are unencumbered:
(ii) mortgage financing secured by  the Scheduled Hotels as
described above;  and (iii) contributions  from  third parties.

On July 15, 1996, the Company received a commitment for a
secured line of credit.   Borrowings under the secured line of credit
will mature three years from the date of closing and require
quarterly principal payments commencing September 30, 1997.  
Borrowings bear interest at LIBOR plus an applicable margin as
defined in the credit agreement.  The Company pays a
commitment fee of 0.375% per annum on the daily unused portion
of the credit facility.

Including the secured line of credit the Company has received  loan
commitments for the projects planned and under construction in
excess of $170 million.

The Company expects to develop new hotels through  limited
partnerships in which the Company will be the general partner and
an affiliate of the general partner  will be the limited partner.  As
permitted by the Indentures relating to the 1994 Notes and the
1995 Notes (the "1994 and 1995 Note Indentures"),  each of these
entities will be an "Unrestricted Subsidiary" for purposes thereof,
and accordingly, the ability of the Company to fund these entities
is subject to certain limitations contained in the 1994 and 1995
Note Indentures.  All of the indebtedness of these entities will be
non-recourse to the Company. The Company believes that funding
permitted under the 1994 and 1995 Note Indentures will be
sufficient to meet its development plans.

Based upon current plans relating to the timing of new hotel
development, the Company anticipates that its capital resources
will be adequate to satisfy  its 1996 capital requirements for the
currently planned projects and normal recurring capital
improvement projects.

The  Company  accrued distributions of approximately  $ 2.7 million
during the first nine months of 1996 to its partners.  Distributions by
the Company to its partners must be made in accordance with
provisions of the 1994 and 1995 Note Indentures.



Part II.  OTHER INFORMATION AND SIGNATURES

Item 1. Legal Proceedings

A lawsuit has been filed in the U.S. District Court of Arizona, CV
96-356 TUC JMR, against John Q. Hammons Hotels Two, L.P., a
Delaware limited partnership, and John Q. and Juanita K.
Hammons, husband and wife.  The Second Amended Complaint
was filed on August 5, 1996, by the Marshall Foundation, a not-for-profit
Arizona corporation.  The lawsuit arises out of a Ground
Lease by the Marshall Foundation to John Q. Hammons Hotels
Two, L.P., the performance of which is guaranteed by John Q. and
Juanita K. Hammons.  The Ground Lease requires Hammons to
construct a hotel on the subject land and maintain and operate the
hotel for a 99-year term.

The lawsuit alleges that the Hammons entities are guilty of bad
faith and misrepresentation, as well as fraud, and that the Marshall
Foundation is entitled to specific performance, declaratory relief on
certain issues and damages.  The claim arises out of a dispute
over the course of construction of the hotel, with the Marshall
Foundation claiming that it has the right to approve all
modifications to the original plans developed for the hotel and the
Hammons entities contending that they have the right to build the
hotel in a manner that is consistent with the original plans and
drawings but subject only to the Ground lease requirement that the
hotel be First-class in quality and have a value of more than
$16,000,000.

Hammons has filed a counterclaim seeking declaratory relief with
regard to whether it is complying with the terms of the Ground
Lease between the parties and seeking monetary damages from
the Marshall Foundation for the Foundation's wrongful interference
with the rights of Hammons under the terms of the Ground Lease.
A partial settlement has been reached which postpones any further
litigation until the hotel is complete.

Item 6. Exhibits and Reports on Form 8-K

     (b) Reports on Form 8-K

         No reports on Form 8-K have been filed during the
         quarter  for which this report is filed.






SIGNATURES

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


                                                  John Q. Hammons Hotels, Inc.
                                                                     
                                               By:      /s/   John Q. Hammons
                                                           John Q. Hammons
                                                          Chairman, Founder, 
                                                  and Chief Executive Officer

                                               By:     /s/ Mel J. Volmert
                                                             Mel J. Volmert
                                                     Executive Vice President
                                                  and Chief Financial Officer
 
 Dated: November 8, 1996