AMERICAN GENERAL HOSPITALITY CORP
4, 1996-08-12
REAL ESTATE INVESTMENT TRUSTS
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                    U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                     FORM 4

                       STATEMENT OF CHANGES IN OWNERSHIP

    Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
   Section 17(a) of the Public Utility Holding Company Act of 1935 or Section
                  30(f) of the Investment Company Act of 1940


/  /  Check this box if                           OMB APPROVAL
      subject to Section 16.                      ------------
      Form 4 or Form 5                            OMB Number 2325-0287
      obligations may continue.                   Expires: April 30, 1997
      See Instruction 1(b).                       Estimated average burden
                                                  hours per response.....0.5

1.    Name and Address of Reporting Person

      Hance                                Kent                      R.
      (Last)                              (First)                 (Middle)

      c/o Hance, Scarborough, Woodward & Weisbart, 111 Congress Ave., Suite 800
                                         (Street)

      Austin                                TX                     78701-4043
      (City)                              (State)                  (Zip)


2.    Issuer Name and Ticker or Trade Symbol

      American General Hospitality Corporation/AGT

3.    IRS or Social Security Number of Reporting Person
      (Voluntary)


4.    Statement for Month/Year

      7/96

5.    If Amendment, Date of Original  (Month/Day/Year)
          N/A

6.    Relationship of Reporting Person to Issuer
                        (Check all applicable)

         X    Director                                  10% Owner
      -------                                   -------
              Officer (give title below)                Other (specify below)
      -------                                   -------

394738.1

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<TABLE>
<CAPTION>

TABLE I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

<C>                   <C>        <C>             <C>                         <C>                  <C>              <C>      
1. Title of Security  2. Trans-  3. Transaction  4. Securities Acquired (A)  5. Amount of         6. Ownership     7. Nature
   (Instr. 3)            action     Code            or Disposed of (D)          Securities           Form:            of Indirect
                         Date       (Instr.8)       (Instr. 3, 4 and 5)         Beneficially         Direct (D)       Beneficial
                         (Month/                                                Owned at End         or Indirect      Ownership
                         Day/                                                   of Month             (I)
                         Year)
                                    Code   V      Amount (A) or (D)   Price     (Instr. 3 and 4)      (Instr. 4)          (Instr. 4)


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Common Stock             7/31/96     P            2,500      A        $17.75       2,500                D
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Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.    (Over)
                                                          (Print or Type Responses)                            SEC 1474 (8-92)
</TABLE>

 394738.1


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<TABLE>
<CAPTION>

FORM 4 (continued)             Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
                                        (e.g., put, calls, warrants, options, convertible securities)



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<C>                                <C>              <C>             <C>                  <C>                       <C>            
1. Title of Derivative Security    2. Conver-       3. Trans-       4. Transac-          5. Number of Deriv-       6. Date Exer-  
                                      sion or          action          tion Code            ative Securities          cisable and 
   (Instr. 3)                         Exercise         Date                                 Acquired (A) or           Expiration    
                                      Price of                         (Instr. 8)           Disposed of (D)           Date          
                                      Deriv-           (Month/                                                       (Month/Day/    
                                      ative            Day/                                 (Instr. 3, 4,            Year)          
                                      Security         Year)                                and 5)                                  
                                                                                                                                    
                                                                                                                                    
                                                                                                                   Date      Expir- 
                                                                                                                   Exer-     ation  
                                                                                                                   cisable   Date   
                                                                     Code         V         (A)          (D)

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1. Title of Derivative Security        7. Title and Amount of       8. Price of     9. Number      10. Owner-     11. Nature of
                                          Underlying Securities        Derivative   of Deriv-      ship Form of   Indirect
   (Instr. 3)                                                          Security     ative          Derivative     Beneficial
                                          (Instr. 3 and 4)                          Securities     Security:      Ownership
                                                                       (Instr. 5)   Beneficially   Direct (D) or
                                                                                    Owned at       Indirect (I)   (Instr. 4)
                                                                                    End of         (Instr. 4)
                                                                                    Month
                                                                                    (Instr. 4)
                                          Title      Amount or
                                                     Number of
                                                     Shares
                                  

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Explanation of Responses:


**Intentional misstatements or omissions of facts constitute Federal Criminal Violations.       
  See 18 U.S.C.  1001 and 15 U.S.C. 78ff(a).                                                    

 By:  /s/Kent. R. Hance                        August 12, 1996
   **Signature of Reporting Person             Date        

Note:        File three copies of this Form, one of which must be manually signed.
             If space provided is insufficient, see Instruction 6 for procedure.
                                                       Page 2
SEC 1474 (8-92)
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394738.1



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