U.S. SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

(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 30, 2000

                                       or

[  ] TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE
 ACT OF 1934

              For the transition period from _________ to _________

                         Commission File Number: 0-22745


                         Janus Hotels and Resorts, Inc.
             (Exact name of registrant as specified in its charter)



            DELAWARE                                   13-2572712
 (State or other jurisdiction of                     (IRS Employer
  incorporation or organization)                   Identification No.)



         2300 Corporate Blvd., N.W.,
                 Suite 232
            Boca Raton, Florida                        33431-8596
    (Address of principal executive offices)           (Zip Code)



       Registrant's telephone number, including area code: (561) 994-4800



(Former  name,  former  address and former  fiscal year,  if changed  since last
report)


Indicate by check mark whether the registrant (1) has 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  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No | |

Number of shares of common stock outstanding as of November 8, 2000: 8,670,592










                                       1
<PAGE>




                         JANUS HOTELS AND RESORTS, INC.

                                    FORM 10-Q
<TABLE>
<CAPTION>

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000



  Part I.        Financial Information                                                 Page No.
                                                                                       --------
<S>                           <C>                                                         <C>
  Item 1.        Financial Statements
                   Unaudited Consolidated Balance Sheets As Of September 30, 2000
                      and December 31, 1999                                                3
                   Unaudited Consolidated Statements Of Operations For The Three
                      Months Ended September 30, 2000 and 1999                             4
                   Unaudited Consolidated Statements Of Operations For The Nine
                      Months Ended September 30, 2000 and 1999                             5
                   Unaudited Consolidated Statements Of Cash Flows For The Nine
                      Months ended September 30, 2000 and 1999                             6
                   Notes To Unaudited Consolidated Financial Statements                    7
  Item 2.        Management's Discussion and Analysis Of Financial Condition and
                   Results of Operations                                                   8
  Part II.       Other Information                                                         10
                 Signature Page                                                            11

</TABLE>






















                                       2
<PAGE>


                         JANUS HOTELS AND RESORTS, INC.
<TABLE>
<CAPTION>
                     UNAUDITED CONSOLIDATED BALANCE SHEETS
                 AS OF SEPTEMBER 30, 2000 AND DECEMBER 31,1999

                                                                                      September 30,     December 31,
                                                                                          2000              1999
                                                                                      -------------     ------------
                                     ASSETS
<S>                                                                                       <C>                 <C>
Current assets:
   Cash and cash equivalents                                                          $  9,698,706      $  8,859,888
   Restricted cash                                                                       1,833,121         1,251,297
   Accounts receivable                                                                   2,478,612         1,743,241
   Current portion of notes receivable                                                      94,557           182,226
   Other current assets                                                                    210,180           212,082
                                                                                       -----------       -----------
     Total current assets                                                               14,315,176        12,248,734
                                                                                       -----------       -----------

Property held for sale                                                                  12,659,918        12,641,199
Property and equipment, net                                                             81,682,546        84,059,513
Mortgage notes receivable                                                                3,329,360         3,392,709
Goodwill, net                                                                            7,382,992         7,542,376
Deferred tax asset                                                                       1,265,000         2,566,000
Other assets                                                                             5,807,279         5,241,958
                                                                                       -----------       -----------
                                                                                      $126,442,271      $127,692,489
                                                                                       ===========       ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Current portion of long-term debt                                                  $  3,722,021      $  3,776,846
   Accounts payable                                                                      2,267,101         2,215,038
   Accrued expenses                                                                      2,236,684         1,959,960
                                                                                       -----------       -----------
     Total current liabilities                                                           8,225,806         7,951,844
                                                                                       -----------       -----------

Long-term debt, net of current portion                                                  65,398,990        67,933,460
Deferred tax liabilities                                                                 2,250,275         2,345,275
Minority interest                                                                        2,599,594         2,465,995

Stockholders' equity:
   Preferred stock, series B; par value $0.01 per share; 20,000 shares authorized;
    16,788.08 shares issued and outstanding                                                    168               168
   Common stock, par value  $0.01 per share; 15,000,000 shares authorized;
     11,883,220 shares issued                                                              118,833           118,833
   Additional paid-in capital                                                           52,582,257        52,582,257
   Accumulated deficit                                                                  (3,317,153)       (4,288,844)
   Treasury stock, 3,212,128 common shares, at cost                                     (1,416,499)       (1,416,499)
                                                                                       -----------       -----------
     Total stockholders' equity                                                         47,967,606        46,995,915
                                                                                       -----------       -----------
                                                                                      $126,442,271      $127,692,489
                                                                                       ===========       ===========
</TABLE>

           See notes to unaudited consolidated financial statements.





                                       3
<PAGE>


                         JANUS HOTELS AND RESORTS, INC.
<TABLE>
<CAPTION>
                UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

                                                                                          2000             1999
                                                                                       ----------       ----------
<S>                                                                                       <C>               <C>
Revenues:
   Room and related services                                                          $11,311,303       $12,689,305
   Food and beverage                                                                    2,678,693         2,793,761
   Management fees                                                                        795,872           517,214
   Other                                                                                  322,968           247,481
                                                                                       ----------        ----------
     Total revenues                                                                    15,108,836        16,247,761
                                                                                       ----------        ----------

Operating expenses:
   Direct:
     Room and related services                                                          2,696,636         2,867,023
     Food and beverage                                                                  2,244,190         2,194,057
     Selling and general                                                                  524,612           534,879
                                                                                       ----------        ----------
       Total direct expenses                                                            5,465,438         5,595,959
                                                                                       ----------        ----------
   Occupancy expenses                                                                   1,676,763         1,793,557
   Selling, general and administrative expenses                                         3,209,457         3,291,592
   Depreciation                                                                           819,815           292,152
   Amortization                                                                           102,646            80,095
                                                                                       ----------        ----------
       Total operating expenses                                                        11,274,119        11,053,355
                                                                                       ----------        ----------

Operating income                                                                        3,834,717         5,194,406

Other income (expense):
   Interest expense                                                                    (1,506,212)       (1,628,050)
   Interest income                                                                        186,987           161,856
   Other                                                                                  (75,000)         (168,111)
                                                                                       ----------        ----------
Income from continuing operations before income taxes and minority interest             2,440,492         3,560,101

Provision for income taxes                                                                986,000           651,861
                                                                                       ----------        ----------
Income from continuing operations before minority interest                              1,454,492         2,908,240

Minority interest                                                                          95,087            59,940
                                                                                       ----------        ----------
Income from continuing operations                                                       1,359,405         2,848,300
Gain (loss) on disposal of discontinued operations, net of taxes                           18,415          (128,547)
                                                                                       ----------        ----------
Net income                                                                              1,377,820         2,719,753
Less preferred dividend requirement                                                       317,364           313,914
                                                                                       ----------        ----------
Net income applicable to common stock                                                 $ 1,060,456       $ 2,405,839
                                                                                       ==========        ==========

Basic income per common share:
   Income from continuing operations                                                        $0.12             $0.29
   Gain (loss) on disposal of discontinued operations                                           -             (0.01)
                                                                                             ----              ----
   Net income                                                                               $0.12             $0.28
                                                                                             ====              ====

Diluted income per common share:
   Income from continuing operations                                                        $0.12             $0.29
   Gain (loss) on disposal of discontinued operations                                           -             (0.01)
                                                                                             ----              ----
   Net income                                                                               $0.12             $0.28
                                                                                             ====              ====

Weighted average common shares:
   Basic                                                                                8,671,092         8,671,092
                                                                                        =========         =========
   Diluted                                                                              8,671,092         8,671,092
                                                                                        =========         =========
</TABLE>

           See notes to unaudited consolidated financial statements.


                                       4
<PAGE>

                         JANUS HOTELS AND RESORTS, INC.
<TABLE>
<CAPTION>
                UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
             FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

                                                                                          2000              1999
                                                                                      -----------       -----------
<S>                                                                                       <C>                 <C>
Revenues:
   Room and related services                                                          $28,302,308       $30,423,220
   Food and beverage                                                                    7,870,394         7,878,243
   Management fees                                                                      2,459,869         1,540,172
   Other                                                                                  802,271           664,624
                                                                                       ----------        ----------
     Total revenues                                                                    39,434,842        40,506,259
                                                                                       ----------        ----------

Operating expenses:
   Direct:
     Room and related services                                                          6,960,934         7,224,122
     Food and beverage                                                                  6,171,912         6,154,563
     Selling and general                                                                1,584,047         1,539,837
                                                                                       ----------        ----------
       Total direct expenses                                                           14,716,893        14,918,522
                                                                                       ----------        ----------
   Occupancy expenses                                                                   4,808,950         5,137,107
   Selling, general and administrative expenses                                         8,672,086         8,800,329
   Severance arrangement of former president                                              500,000                 -
   Depreciation                                                                         2,498,015         2,891,973
   Amortization                                                                           272,457           237,602
                                                                                       ----------        ----------
       Total operating expenses                                                        31,468,401        31,985,533
                                                                                       ----------        ----------

Operating income                                                                        7,966,441         8,520,726

Other income (expense):
   Interest expense                                                                    (4,581,473)       (4,975,254)
   Interest income                                                                        559,382           526,024
   Other                                                                                  (45,107)         (163,332)
                                                                                       ----------        ----------
Income from continuing operations before income taxes and minority interest             3,899,243         3,908,164

Provision for income taxes (See Note 4)                                                 1,902,000           651,861
                                                                                       ----------        ----------
Income from continuing operations before minority interest                              1,997,243         3,256,303

Minority interest                                                                         133,599            94,022
                                                                                       ----------        ----------
Income from continuing operations                                                       1,863,644         3,162,281
Gain (loss) on disposal of discontinued operations, net of taxes                           53,244          (128,547)
                                                                                       ----------        ----------
Net income                                                                              1,916,888         3,033,734
Less preferred dividend requirement                                                       945,197           896,630
                                                                                       ----------        ----------
Net income applicable to common stock                                                 $   971,691       $ 2,137,104
                                                                                       ==========        ==========

Basic income per common share:
   Income from continuing operations                                                        $0.11             $0.26
   Gain (loss) on disposal of discontinued operations                                           -             (0.01)
                                                                                             ----              ----
   Net income                                                                               $0.11             $0.25
                                                                                             ====              ====

Diluted income per common share:
   Income from continuing operations                                                        $0.11             $0.26
   Gain (loss) on disposal of discontinued operations                                           -             (0.01)
                                                                                             ----              ----
   Net income                                                                               $0.11             $0.25
                                                                                             ====              ====

Weighted average common shares:
   Basic                                                                                8,671,092         8,674,975
                                                                                        =========         =========
   Diluted                                                                              8,671,092         8,674,975
                                                                                        =========         =========
</TABLE>

           See notes to unaudited consolidated financial statements.




                                       5
<PAGE>

                             JANUS HOTELS AND RESORTS, INC.
<TABLE>
<CAPTION>
                    UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999


                                                                                                  2000             1999
                                                                                               ----------      -----------
<S>                                                                                                <C>             <C>
Operating activities:
Net income                                                                                     $1,916,888      $ 3,033,734
Adjustments to reconcile net income  to net cash provided by operating activities:
   Depreciation and amortization                                                                2,498,015        2,891,973
   Amortization of intangible assets                                                              272,457          237,602
   Deferred taxes                                                                               1,206,000          259,171
   Minority Interest                                                                              133,599           94,022
   Loss on sale of properties                                                                      45,107          168,110
   Discontinued operations                                                                              -          143,628
Changes in operating assets and liabilities:
   Accounts receivable                                                                           (735,371)      (1,244,652)
   Other current assets                                                                             1,902           29,220
   Other assets                                                                                  (688,397)         786,830
   Accounts payable and accrued expenses                                                          166,832          817,932
                                                                                                ---------       ----------
      Net  cash provided by operating activities                                                4,817,032        7,217,570
                                                                                                ---------       ----------

Investing activities:
Acquisition of hospitality business, net of noncash consideration and cash acquired                     -          462,008
Increase in notes receivable                                                                     (161,328)        (250,000)
Purchases of property and equipment                                                            (2,252,144)      (3,992,024)
Proceeds from sale of property                                                                  2,700,000        2,250,000
Collections of notes receivable                                                                   237,346          348,703
                                                                                                ---------       ----------
      Net cash provided by (used in) investing activities                                         523,874       (1,181,313)
                                                                                                ---------       ----------

Financing activities:
Dividends paid                                                                                   (945,197)        (896,630)
Increase in restricted cash                                                                      (581,824)      (1,956,631)
Repayments of long-term borrowings                                                             (2,975,067)      (5,072,000)
                                                                                                ---------       ----------
      Net cash used in financing activities                                                    (4,502,088)      (7,925,261)
                                                                                                ---------       ----------

Increase (decrease) in cash and cash equivalents                                                  838,818       (1,889,004)

Cash and cash equivalents, beginning of period                                                  8,859,888       12,383,741

                                                                                                ---------       ----------
Cash and cash equivalents, end of period                                                       $9,698,706      $10,494,737
                                                                                                =========       ==========

Supplemental disclosure of cash flow data:
Interest paid                                                                                  $4,581,473      $ 4,975,254
                                                                                                =========       ==========
Taxes paid                                                                                     $  477,800      $         -
                                                                                                =========       ==========

Noncash investing and financing transactions:
Acquisitions of equipment through capital leases                                               $  385,772      $         -
                                                                                                =========       ==========

Acquisition of hospitality business
   Assets acquired                                                                             $        -      $27,192,451
   Liabilities assumed                                                                                  -       20,856,251
                                                                                                ---------       ----------
   Value of stock issued                                                                       $        -      $ 6,336,200
                                                                                                =========       ==========
</TABLE>

               See notes to unaudited consolidated financial statements.


                                       6
<PAGE>

                 JANUS HOTELS AND RESORTS, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS



Note 1 -- Unaudited interim financial statements:

         In the opinion of management,  the accompanying  unaudited consolidated
         financial  statements  reflect all  adjustments,  consisting  of normal
         recurring accruals,  necessary to present fairly the financial position
         of Janus Hotels and Resorts,  Inc. and  subsidiaries  (the "Company" or
         "Janus") as of September 30, 2000,  its results of  operations  for the
         three months and nine months ended  September 30, 2000 and 1999 and its
         cash flows for the nine months ended September 30, 2000.  Certain terms
         used  herein  are  defined  in  the  audited   consolidated   financial
         statements  of the  Company for the year ended  December  31, 1999 (the
         "Audited Janus  Financial  Statements")  included in the Company's form
         10-KSB  previously  filed with the Securities and Exchange  Commission.
         Accordingly,  these unaudited  consolidated financial statements should
         be read in conjunction with the Audited Janus Financial  Statements and
         the other financial statements included in the Form 10-KSB.

         The results of operations for the nine months ended  September 30, 2000
         are not  necessarily  indicative of the results of  operations  for the
         full year ending December 31, 2000.

Note 2 -- Organization:

         As of September 30, 2000, the Company owned and operated fifteen hotels
         (of which  thirteen are  wholly-owned,  one is 85% owned and one is 75%
         owned)  and a  hotel  management  company,  which  manages  hotels  for
         unrelated parties.

Note 3 - Resignation of the Company President:

         Effective  April 30, 2000, the President of the Company  resigned.  The
         cost of the severance package was a cash payment of $500,000.

Note 4 - Disposal of Hotel Property:

         During the third quarter of 2000, an early payoff of a note  receivable
         was received related to the prior year sale of Knights Inn Westerville.
         The early  payoff  reflected a $75,000  discount  which was included in
         other income.

         On June 15, 2000, the Company  disposed of a hotel property  located in
         Cincinnati,  Ohio.  The  hotel  was  sold for  cash of  $2,700,000  and
         resulted in a gain of $29,893 for financial reporting purposes. For tax
         purposes,  this transaction produced an estimated gain of approximately
         $978,000 that cannot be offset by the  Company's  federal net operating
         loss  carryforward.  As a result, the tax provision for the nine months
         ended September 30, 2000 includes $333,000 of currently payable federal
         income taxes related to this transaction.

Note 5 -- Litigation:

         The Company is a party to various legal proceedings.  In the opinion of
         management,  these  actions  are  routine in nature and will not have a
         material  adverse  effect  on  the  Company's   consolidated  financial
         statements in subsequent years.

Note 6 - Common Stock Repurchase Program

         On September 22, 2000, the Company's board of directors  authorized the
         repurchase of up to 1,000,000 shares of the Company's common stock. The
         repurchases  will be made  in the  open  market  at the  discretion  of
         Company management over a period of one year. As of September 30, 2000,
         no shares were repurchased under the program.





                                       7
<PAGE>


ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Overview

The operations of the Company are comprised primarily of the operations of owned
hotels and the Company's management of hotels owned by third parties.

The Company had net income of  $1,377,820  for the three months ended  September
30,  2000  compared  to net  income of  $2,719,753  for the three  months  ended
September 30, 1999.The  Company had net income of $1,916,888 for the nine months
ended  September  30,  2000  compared to net income of  $3,033,734  for the nine
months ended September 30, 1999.

Three  Months  Ended  September  30,  2000  Compared to the Three  Months  Ended
September 30, 1999

Room and related  services  revenue  decreased 10.9% to $11,311,303 in 2000 from
$12,689,305 in 1999. The decrease was attributable to properties  disposed of in
2000 and 1999,  and softness in the Midwestern  markets.  The average daily room
rate (excluding disposed properties) decreased to $68.85 for 2000 from $70.20 in
1999. Occupancy (excluding disposed properties)  increased in 2000 to 72.0% from
70.5% in 1999.  Excluding the properties  disposed of in 2000 and 1999, room and
related services revenue decreased 3.4%.

Food and beverage  revenues are  principally  a function of the number of guests
who stay at each owned hotel,  local walk-in business and catering sales.  These
revenues  decreased  4.1% to  $2,678,693 in 2000 from  $2,793,761 in 1999.  This
decrease is related  primarily  to a decrease in walk-in  business  and catering
sales.  The  properties  disposed  of in 2000 and 1999 had no effect on food and
beverage revenues.

Management fee income increased 53.9% to $795,872 in 2000 from $517,214 in 1999.
This  increase is primarily  due to the  addition of new third party  management
contracts.

Total  direct  operating  expenses  decreased  2.3% to  $5,465,438  in 2000 from
$5,595,959 in 1999 and  increased as a percentage  of room and related  services
and food and beverage  revenues to 39.1% from 36.2%.  Excluding  the  properties
disposed of in 2000 and 1999,  total direct  operating  expenses  increased 3.0%
primarily due to higher food and payroll costs.

Occupancy  expenses  decreased  6.5% to  $1,676,763  from  $1,793,557  in  1999.
Excluding  the  properties  disposed  of in 2000 and  1999,  occupancy  expenses
increased  2.7% as  maintenance  projects at various  hotels were  completed and
property taxes increased.

Selling,  general and  administrative  expenses  decreased 2.5% to $3,209,457 in
2000 from  $3,291,592 in 1999 and increased as a percentage of total revenues to
21.2%  from  20.3%.  Excluding  the  properties  disposed  of in 2000 and  1999,
selling,  general and  administrative  expenses  increased  2.1%,  as additional
management personnel were required to manage the new hotels under contract.

Depreciation  increased by $527,663 in 2000 from $292,152 in 1999.  The increase
was primarily attributable to the credit adjustments made in 1999 for the change
in estimated  useful lives and the  modification of the purchase  allocation for
four hotel properties based on an acquisition appraisal.

Interest income increased to $186,987 in 2000 from $161,856 in 1999.

Interest  expense  decreased to $1,506,212 in 2000 from  $1,628,050 in 1999. The
decrease was  attributable  to the  properties  disposed of in 2000 and 1999 and
traditional amortization.

Minority  interest  increased to $95,087 in 2000 from $59,940 in 1999 reflecting
the results of operations  from the Kings Dominion  partnership and the Days Inn
Pompano hotel in 2000.

Nine Months Ended September 30, 2000 Compared to the Nine Months Ended September
30, 1999

Room and related  services  revenue  decreased  7.0% to $28,302,308 in 2000 from
$30,423,220  in 1999.  The decrease  was  attributable  primarily to  properties
disposed of in 2000 and 1999.  The average daily room rate  (excluding  disposed
properties)  decreased  to  $63.73  for 2000  from  $64.39  in  1999.  Occupancy
(excluding disposed properties) decreased in 2000 to 64.2% from 64.4%. Excluding
the properties  disposed of in 2000 and 1999, room and related  services revenue
decreased 0.8%.

                                       8

<PAGE>

Food and beverage revenues  decreased 0.1% to $7,870,394 in 2000 from $7,878,243
in 1999. This decrease is related primarily to decreased  occupancy and catering
sales.  The  properties  disposed  of in 2000 and 1999 had no effect on food and
beverage revenues.

Management fee income  increased  59.7% to $2,459,869 in 2000 from $1,540,172 in
1999.  This  increase  is  primarily  due to the  addition  of new  third  party
management contracts. In addition,  one-time fees of approximately $124,000 were
realized in the first nine months of 2000.

Total direct  operating  expenses  decreased  1.4% to  $14,716,893  in 2000 from
$14,918,522  in 1999 and increased as a percentage of room and related  services
and food and beverage  revenues to 40.7% from 39.0%.  Excluding  the  properties
disposed of in 2000 and 1999, total direct operating expenses increased 2.7%.

Occupancy  expenses  decreased  6.4% to  $4,808,950  from  $5,137,107  in  1999.
Excluding  the  properties  disposed  of in 2000 and  1999,  occupancy  expenses
increased  1.3% as  maintenance  projects at various  hotels were  completed and
property taxes increased.

Selling,  general and  administrative  expenses  decreased 1.5% to $8,672,086 in
2000 from  $8,800,329 in 1999 and increased as a percentage of total revenues to
22.0%  from  21.7%.  Excluding  the  properties  disposed  of in 2000 and  1999,
selling,  general  and  administrative  expenses  increased  2.1% as  additional
regional  management  personnel  were  required  to manage the new hotels  under
contract.

Depreciation decreased by $393,958 in 2000 from $2,891,973 in 1999. The decrease
was primarily  attributable to the properties  disposed of in 2000 and 1999, and
the cessation of depreciation on one hotel property held for sale.

Interest income increased to $559,382 in 2000 from $526,024 in 1999.

Interest  expense  decreased to $4,581,473 in 2000 from  $4,975,254 in 1999. The
decrease  was  attributable  to the  properties  disposed  of in 2000 and  1999,
minimal  short-term  borrowings in the first nine months of 2000 and traditional
amortization.

The  provision  for  income  taxes in the first  nine  months  of 2000  includes
$333,000  related to the disposal of a hotel  property in the second  quarter of
2000.  The taxable gain  realized from the  transaction  cannot be offset by the
Company's net operating loss carryforward.

Minority interest  increased to $133,599 in 2000 from $94,022 in 1999 reflecting
the results of operations  from the Kings Dominion  partnership and the Days Inn
Pompano hotel in 2000.

Liquidity and Capital Resources

Total assets  decreased to $126,442,271 at September 30, 2000 from  $127,692,489
at December 31, 1999.

Net cash  provided by operating  activities  decreased to $4,817,032 in the nine
months  ended  September  30,  2000 from  $7,217,570  in the nine  months  ended
September  30, 1999.  The decrease is primarily  the result of lower net income,
lower depreciation and the increase in accounts receivable.

Net cash provided by investing  activities was $523,874 in the nine months ended
September 30, 2000  compared to cash used in investing  activities of $1,181,313
in the nine months  ended  September  30,  1999.  The Company  plans to spend an
additional $224,000 on capital improvements during the remainder of 2000.

Net cash used by financing  activities  was  $4,502,088 in the nine months ended
September 30, 2000 compared to  $7,925,261  used by financing  activities in the
nine months ended  September  30,  1999.  The change is the result of lower debt
repayments and a smaller increase in restricted cash. On September 22, 2000, the
Company's board of directors authorized the repurchase of up to 1,000,000 shares
of the Company's common stock. The repurchases will be made with operating funds
in the open market at the discretion of Company  management over a period of one
year. As of September 30, 2000, no shares were repurchased under the program.

Earnings  before  interest,  taxes,  depreciation  and  amortization  ("EBITDA")
decreased  to  $10,736,913  during the nine  months  ended  September  30,  2000
compared to $11,650,301 for the nine months ended September 30, 1999.  EBITDA is


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<PAGE>

defined as operating  income plus  depreciation  and  amortization.  The Company
considers this definition of EBITDA to be an indicative measure of the Company's
operating  performance because it can be used to measure the Company's abilities
to service  debt,  fund  capital  expenditures  and expand  its  business;  such
information should not be considered as an alternative to net income,  operating
profit,  cash flows from operations or any other operating or liquidity  measure
prescribed by generally accepted accounting principles.

The Company maintains a number of commercial banking relationships and maintains
aggregate lines of credit totaling  $2,200,000,  which had no amount outstanding
at September 30, 2000.

The Company's  principal sources of liquidity are cash on hand (including escrow
deposits and replacement reserves),  cash from operations,  earnings on invested
cash and, when required, principally in connection with acquisitions, borrowings
(consisting primarily of loans secured by mortgages on real property owned or to
be acquired by the Company).  The  Company's  continuing  operations  are funded
through cash generated  from its hotel  operations.  Acquisitions  of hotels are
expected  to be  financed  through  a  combination  of cash on hand,  internally
generated cash,  issuance of equity securities and borrowings,  some of which is
likely to be secured by assets of the Company.

Seasonality

Demand at many of the Company's hotels is affected by seasonal patterns.  Demand
for hotel rooms in the industry generally tends to be lower during the first and
fourth  quarters and higher in the second and third quarters.  Accordingly,  the
Company's revenues reflect similar seasonality.

Forward Looking Statements

When used in this and in future  filings by the Company with the  Securities and
Exchange Commission, in the Company's press releases and in oral statements made
with the approval of an authorized  executive officer of the Company,  the words
or phrases  "will likely  result,"  "expects,"  "plans,"  "will  continue,"  "is
anticipated,"   "estimated,"  "project"  or  "outlook"  or  similar  expressions
(including  confirmations by an authorized  executive  officer of the Company of
any such  expressions  made by a third party with  respect to the  Company)  are
intended to identify forward-looking  statements.  The Company wishes to caution
readers not to place undue reliance on any such forward-looking statements, each
of which speak only as of the date made.  Such statements are subject to certain
risks and  uncertainties  that could cause actual  results to differ  materially
from  historical  earnings and those  presently  anticipated or projected.  Such
risks and other aspects of the Company's  business and  operations are described
in "Management's  Discussion and Analysis of Financial  Condition and Results of
Operations." The Company has no obligation to publicly release the result of any
revisions  that  may  be  made  to any  forward-looking  statements  to  reflect
anticipated or unanticipated events or circumstances occurring after the date of
such statements.

                           PART II--OTHER INFORMATION

Items 1 to 5

         None

Item 6 -- Exhibits and Reports on Form 8-K.

     A.   Exhibits

         Exhibit 27: Financial Data Schedule

     B.   Reports on Form 8-K

         There were no reports on Form 8-K filed  during the three  months ended
September 30, 2000.





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<PAGE>



                                   SIGNATURES

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

                                        JANUS HOTELS AND RESORTS, INC.

Dated:  November 14, 2000               /s/ Richard A. Tonges
        -----------------               ---------------------------------------
                                        Richard A. Tonges
                                        Treasurer and Vice President of Finance
                                        (Principal Financial and Accounting
                                        Officer)































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