<PAGE>   1
                                  F O R M 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                            Washington, D. C. 20549

                              --------------------


               Quarterly Report Pursuant to Section 13 or 15 (d)
                     of The Securities Exchange Act of 1934


                              --------------------



                        For Quarter Ended June 30, 1997

                          Commission File No. 2-64309

                            GOLF HOST RESORTS, INC.

            STATE OF COLORADO EMPLOYER IDENTIFICATION NO. 84-0631130

                Post Office Drawer 3131, Durango, Colorado 81302

                        Telephone Number (970) 259-2000




         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 twelve months, and (2) has been subject to the
filing requirements for the past 90 days. Yes   X      No 
                                             -------     ------
         Issuer has no common stock subject to this report.

                                  Page 1 of 19


<PAGE>   2



                            GOLF HOST RESORTS, INC.
                (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
                                 BALANCE SHEETS

                                     ASSETS
                  (Substantially all pledged - Notes 2 and 3)

<TABLE>
<CAPTION>
                                               JUNE 30,           DECEMBER 31,
                                                1997                 1996
                                           --------------         -----------
                                             (unaudited)
<S>                                        <C>                    <C>        
CURRENT ASSETS:
     Cash                                  $ 6,956,559            $   488,685
     Accounts receivable                     4,383,882              4,380,108
     Notes receivable                            --                   163,942
     Inventories and supplies                4,947,595              5,123,966
     Prepaid expenses and other                706,478                956,054
     Intercompany receivables                  739,665                724,312
                                           -----------            -----------
     Total current assets                   17,734,179             11,837,067

INTANGIBLES                                 17,424,977                  --

PROPERTY AND EQUIPMENT, at cost,
     less accumulated depreciation
     and amortization                       44,020,450             40,038,322

OTHER DEFERRED CHARGES                         715,322                238,627

LONG-TERM RECEIVABLES, less
     amounts currently due                       --                 1,021,178
                                           -----------            -----------
                                           $79,894,928            $53,135,194
                                           ===========            ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                     Page 2


<PAGE>   3


                            GOLF HOST RESORTS, INC.
                (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
                                 BALANCE SHEETS

                 LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY

<TABLE>
<CAPTION>
                                                  JUNE 30,      DECEMBER 31,
                                                    1997            1996
                                                ------------    -----------
                                                 (unaudited)
<S>                                            <C>              <C>      
CURRENT LIABILITIES:
     Accounts payable                          $  2,091,169     2,258,702
     Accrued expenses                             5,781,085     4,577,981
     Deposits and prepaid fees                    2,211,479     2,755,297
     Notes payable                                     --         734,429
     Maturing long-term obligations                    --       2,788,764
                                                -----------    ----------
         Total current liabilities               10,083,733    13,115,173
                                                -----------    ----------

LONG-TERM OBLIGATIONS,
     less current maturities                     75,775,000    17,777,544
                                                -----------    ----------

LONG-TERM INTERCOMPANY                            3,302,968     4,951,895
                                                -----------    ----------

LONG-TERM CONTINGENCY                                  --       2,221,938
                                                -----------    ----------

SHAREHOLDERS' (DEFICIT) EQUITY:
     Common stock, $1 par, 5,000
         shares authorized and
         outstanding                                  5,000         5,000
     5.6% cumulative preferred
         stock, $1 par, 4,577,000
         shares authorized and
         outstanding                              4,577,000     4,577,000
     Paid-in capital                            (13,557,000)    2,329,447
     Retained (Deficit) Equity                     (291,773)    8,157,197
                                                -----------   -----------
         Total shareholders' (Deficit) Equity    (9,266,773)   15,068,644
                                                -----------   -----------
                                                $79,894,928   $53,135,194
                                                ===========   ===========
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                     Page 3


<PAGE>   4
                            GOLF HOST RESORTS, INC.
                              STATEMENTS OF INCOME
                (a wholly owned subsidiary of Golf Hosts, Inc.)
                                  (unaudited)


<TABLE>
<CAPTION>
                                                       Seven day             84 day                Quarter      
                                                      period ended       period ended               ended       
                                                      June 30, 1997      June 23, 1997           June 30, 1996  
                                                     --------------      -------------          --------------- 
<S>                                                  <C>                 <C>                    <C>             
REVENUES:                                                                                                       
    Hotel                                            $      346,283      $   4,106,527          $   4,206,938   
    Food and beverage                                       275,690          3,485,895              3,780,692   
    Golf                                                    236,227          3,745,237              3,665,311   
    Other                                                   122,733          1,442,607              1,525,156   
    Real estate activities                                    -                  -                     -        
                                                     --------------      -------------          -------------   
                                                            980,933         12,780,266             13,178,097   
                                                     --------------      -------------          -------------   
                                                                                                                
COSTS AND OPERATING EXPENSES:                                                                                   
    Hotel                                                   308,252          3,805,167              3,731,774   
    Food and beverage                                       203,215          2,475,719              2,647,222   
    Golf                                                    112,614          1,538,916              1,563,782   
    Other                                                   347,802          3,707,736              3,730,415   
    General and administrative                              135,894          1,221,000                917,721   
    Real estate activities                                    -                  1,989                 -        
                                                     --------------       ------------           ------------   
                                                          1,107,777         12,750,527             12,590,914   
                                                     --------------       ------------           ------------   
                                                                                                                
OPERATING INCOME ( LOSS)                                    126,844             29,739                587,183   
                                                                                                                
INTEREST, NET                                               160,000            480,143                481,523   
                                                     --------------       ------------           ------------   
                                                                                                                
INCOME (LOSS) BEFORE INCOME TAXES                          (286,844)          (450,404)               105,660   
                                                                                                                
PARENT INCOME TAX CHARGE (CREDIT)                             -               (234,400)                20,500   
                                                     --------------       -------------          ------------   
                                                                                                                
INCOME (LOSS)  BEFORE  EXTRAORDINARY                                                                            
    ITEMS                                                  (286,844)          (216,004)                85,160   
                                                                                                                
LOSS ON EARLY EXTINGUISHMENT OF                                                                                 
    LONG TERM DEBT (NET OF TAXES OF $155,400)                 -               (288,600)            -            
                                                     --------------       ------------           ------------   
                                                                                                                
INCOME (LOSS)  BEFORE DIVIDEND                                                                                  
    REQUIREMENTS ON PREFERRED STOCK                        (286,844)          (504,604)                85,160   
                                                                                                                
DIVIDEND REQUIREMENTS ON                                                                                        
    PREFERRED STOCK                                           4,929             59,149                 64,078   
                                                     --------------       ------------           -------------  
                                                                                                                
NET INCOME (LOSS)  AVAILABLE                                                                                    
    TO COMMON SHAREHOLDERS                           $     (291,773)      $   (563,753)          $     21,082   
                                                     ==============       ============           ============   
                                                                                                                
EARNINGS (LOSS) PER COMMON SHARE                     $       (58.35)      $    (112.75)          $       4.22   
                                                     ==============       ============           ============   
                                                                                                
<CAPTION>

                                                       Seven day           174 day                 Six months      
                                                      period ended       period ended                 ended          
                                                     June 30, 1997       June 23, 1997           June 30, 1996    
                                                     --------------      -------------           ---------------  
<S>                                                  <C>                 <C>                     <C>              
REVENUES:                                                                                                         
    Hotel                                              $    346,283       $ 10,775,626             $ 11,008,990   
    Food and beverage                                       275,690          8,106,385                8,636,926   
    Golf                                                    236,227          9,347,282                9,519,704   
    Other                                                   122,733          3,340,715                3,439,862   
    Real estate activities                                     -               180,000                  (14,288)  
                                                     --------------       ------------              -----------   
                                                            980,933         31,750,008               32,591,194   
                                                     --------------       ------------              -----------   
                                                                                                                  
COSTS AND OPERATING EXPENSES:                                                                                     
    Hotel                                                   308,252          9,083,194                8,957,236   
    Food and beverage                                       203,215          5,591,373                5,766,862   
    Golf                                                    112,614          3,247,628                3,305,784   
    Other                                                   347,802          7,672,813                7,624,748   
    General and administrative                              135,894          2,374,385                2,092,482   
    Real estate activities                                    -                 90,618                      477   
                                                     --------------       ------------             ------------   
                                                          1,107,777         28,060,011               27,747,589   
                                                     --------------       ------------             ------------   
                                                                                                                  
OPERATING INCOME ( LOSS)                                   (126,844)         3,689,997                4,843,605   
                                                                                                                  
INTEREST, NET                                               160,000            945,481                  995,720   
                                                     --------------       ------------              -----------   
                                                                                                                  
INCOME (LOSS) BEFORE INCOME TAXES                          (286,844)         2,744,516                3,847,885   
                                                                                                                  
PARENT INCOME TAX CHARGE (CREDIT)                            -                 967,800                1,424,400   
                                                     --------------       ------------             ------------   
                                                                                                                  
INCOME (LOSS)  BEFORE  EXTRAORDINARY                                                                              
    ITEMS                                                  (286,844)         1,776,716                2,423,485   
                                                                                                                  
LOSS ON EARLY EXTINGUISHMENT OF                                                                                   
    LONG TERM DEBT (NET OF TAXES OF $155,400)            -                    (288,600)              -            
                                                     --------------       ------------             ------------   
                                                                                                                  
INCOME (LOSS)  BEFORE DIVIDEND                                                                                    
    REQUIREMENTS ON PREFERRED STOCK                        (286,844)         1,488,116                2,423,485   
                                                                                                                  
DIVIDEND REQUIREMENTS ON                                                                                          
    PREFERRED STOCK                                           4,929            123,227                  128,156   
                                                     --------------         ----------             ------------   
                                                                                                                  
NET INCOME (LOSS)  AVAILABLE                                                                                      
    TO COMMON SHAREHOLDERS                           $     (291,773)      $  1,364,889             $  2,295,329   
                                                     ==============       ============             ============   
                                                                                                                  
EARNINGS (LOSS) PER COMMON SHARE                     $       (58.35)      $     272.98             $     459.07   
                                                     ==============       ============             ============   
</TABLE>    

   The accompanying notes are an integral part of these financial statements.

                                     Page 4


<PAGE>   5


                            GOLF HOST RESORTS, INC.
                       STATEMENTS OF SHAREHOLDERS' EQUITY
                (a wholly owned subsidiary of Golf Hosts, Inc.)
                                  (unaudited)

<TABLE>
<CAPTION>
                                            $1 Par Value                     5.6% Cumulative                              
                                            Common Stock                     Preferred Stock                  Paid-In     
                                     ----------------------------    ---------------------------------                    
                                        Shares         Amount            Shares            Amount             Capital     
                                     -------------  -------------    ---------------   ---------------    ----------------
<S>                                  <C>            <C>              <C>               <C>                <C>
                                                                                                                          
Balance, December 31, 1995                  5,000         $5,000          4,577,000        $4,577,000          $2,329,447 
                                     ------------  -------------    ---------------   ---------------    ----------------
                                                                                                                          
   Net income available to                                                                                                
      common shareholders                 -              -                 -                 -                   -        
                                     ------------  -------------    ---------------   ---------------    ----------------
                                                                                                                          
Balance, December 31, 1996                  5,000          5,000          4,577,000         4,577,000           2,329,447  
                                                                                                                          
   Notes receivable                                                                                                       
      distribution (Note 1)               -              -                 -                 -                   -        
                                                                                                                          
   Net income available to                                                                                                
      common shareholders                 -              -                 -                 -                   -        
                                     ------------  -------------    ---------------   ---------------    ----------------
                                                                                                                          
Balance, June  23, 1997                     5,000       $  5,000          4,577,000        $4,577,000      $    2,329,447    
                                     ============  =============    ===============   ===============    ================
                                                                                                                          
Balance, June 24, 1997                      5,000      $   5,000          4,577,000        $4,577,000      $   (4,582,000)  
                                                                                                                          
   Distribution to shareholder            -              -                 -                 -                 (8,975,000) 
                                                                                                                          
   Net income (loss) available                                                                                            
       to common shareholder              -              -                 -                 -                   -        
                                     ------------  -------------    ---------------   ---------------    ----------------
                                                                                                                          
Balance, June 30, 1997                      5,000      $   5,000          4,577,000        $4,577,000        $(13,557,000)
                                     ============  =============    ===============   ===============    ================


<CAPTION>
                                                     Retained               Total       
                                                    (Deficit)           Shareholders'   
                                                     Earnings         (Deficit) Equity  
                                                 ----------------     ----------------- 
<S>                                              <C>                  <C>
                                                                                        
Balance, December 31, 1995                             $7,042,986           $13,954,433 
                                                 ----------------     ----------------- 
                                                                                        
   Net income available to                                                              
      common shareholders                               1,114,211             1,114,211 
                                                 ----------------     ----------------- 
                                                                                        
Balance, December 31, 1996                              8,157,197            15,068,644 
                                                                                        
   Notes receivable                                                                    
      distribution (Note 1)                            (3,941,666)           (3,941,666)
                                                                                       
   Net income available to                                                              
      common shareholders                               1,364,889             1,364,889 
                                                 ----------------     ----------------- 
                                                                                        
Balance, June  23, 1997                             $   5,580,420         $  12,491,867 
                                                 ================     ================= 
                                                                                        
Balance, June 24, 1997                                   -                $    -        
                                                                                        
   Distribution to shareholder                           -                   (8,975,000)
                                                                                        
   Net income (loss) available                                                          
      to common shareholder                              (291,773)             (291,773)
                                                 ----------------     ------------------
                                                                                        
Balance, June 30, 1997                             $     (291,773)        $  (9,266,773)
                                                 ================     ================= 


</TABLE>
                                                                                

                                    Page 5


<PAGE>   6


                            GOLF HOST RESORTS, INC.
                (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                      Seven day             174 day               Six months
                                                     period ended        period ended                 ended
                                                    June 30, 1997        June 23, 1997           June 30, 1996
                                                    -------------        -------------           -------------
<S>                                                 <C>                  <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss) before dividend requirements
       on preferred stock                            $  (286,844)        $   1,488,116            $ 2,423,485
   Noncash items included in income:
       Depreciation and amortization                      49,889             1,240,111              1,240,200
                                                     -----------         -------------            -----------
   Cash provided by income                              (236,955)            2,728,227              3,663,685

   Changes in operating working capital                  241,884               417,429                 15,699
                                                     -----------         -------------            -----------
   Cash provided by operations                             4,929             3,145,656              3,679,384
                                                     -----------         -------------            -----------
CASH FLOWS FROM INVESTING ACTIVITIES:

   Increases in other deferred charges                         -                62,302               (248,622)
   Purchases of property and equipment                         -            (1,517,432)            (1,142,757)
   Net recovery of cost of property and
       equipment sold or retired                               -               (56,063)                12,190
   Additions to notes receivable                               -              (378,788)               (17,517)
   Reduction in notes receivable                               -               413,278                556,053
                                                     -----------         -------------            -----------
   Cash (used for) investing                                   -            (1,476,703)              (840,653)
                                                     -----------         -------------            -----------
CASH FLOWS FROM FINANCING ACTIVITIES:

   Net change in notes payable                                 -              (734,429)            (1,285,673)
   Increases in long-term obligations                          -                     -                467,378
   Decreases in long-term obligations                          -              (436,002)            (1,023,564)
   Net proceeds from merger transactions                       -             5,965,529                      -
   Increases in long-term intercompany                    (4,929)             (123,227)             1,084,155
   Increases in long-term contingency                          -               127,050                 70,476
   Decreases in long-term contingency                          -                     -                      -
                                                     -----------          ------------            -----------
   Cash provided (used) for financing                     (4,929)            4,798,921               (687,228)
                                                     -----------          ------------            -----------
NET INCREASE IN CASH                                           -             6,467,874              2,151,503

CASH, BEGINNING OF PERIOD                              6,956,559               488,685                312,603
                                                     -----------          ------------            -----------
CASH, END OF PERIOD                                  $ 6,956,559          $  6,956,559            $ 2,464,106
                                                     ===========          ============            ===========
NONCASH FINANCING AND INVESTING ACTIVITIES:

Preferred stock dividend liability to 
  Golf Hosts, Inc. satisfied through the
  intercompany account                               $     4,929          $    123,227            $   128,156

The Company transferred undeveloped land
  to inventory                                       $         -          $     69,628            $         -

Distributions to shareholders                        $(8,975,000)         $ (3,941,666)           $         -
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                     Page 6


<PAGE>   7



                            GOLF HOST RESORTS, INC.
                (A WHOLLY OWNED SUBSIDIARY OF GOLF HOSTS, INC.)
                         NOTES TO FINANCIAL STATEMENTS
                                 JUNE 30, 1997

(1)    ORGANIZATION, BUSINESS AND SUMMARY OF SIGNIFICANT
       ACCOUNTING POLICIES

       On June 23, 1997, TM Golf Hosts, Inc. ("TMGHI") acquired all of the
       outstanding stock of Golf Hosts, Inc. ("GHI"), previously an 80% owner
       of Golf Host Resorts, Inc. (the "Company"), and the 20% of the Company's
       stock not held by GHI. Concurrently, TMGHI and GHI merged with the legal
       survivor being GHI, which now owns 100% of the Company. Total
       consideration for the acquisition of the outstanding stock of GHI and
       the Company was approximately $63 million, including assumption of
       certain liabilities. The transaction was financed with new borrowing and
       all previous indebtedness of the Company was repaid, resulting in an
       extraordinary loss on early retirement of debt primarily relating to the
       write-off of unamortized debt discounts and related deferred expenses.

       Under the terms of the agreement, certain long term receivables were
       transferred to the selling shareholders immediately prior to the
       transaction. In addition, certain marketable securities and investments
       with ascribed values aggregating $8,975,000 were distributed from the
       Company to its parent, GHI, subsequent to the transaction.

       The interim financial statements are unaudited and were prepared from
       the books and records of the Company. In the opinion of management, they
       include all adjustments necessary for a fair presentation of the
       Company's operations and financial positon. Certain of the Company's
       operations are seasonal in nature and, therefore, interim results from
       operations are not necessarily indicitive of a full year.

       The financial statements as of and for the period from the merger to
       June 30, 1997 reflect the allocation of the purchase price based upon
       the fair value of the assets acquired and the liabilities assumed in
       connection with the merger and are, therefore, not comparable to the
       financial statements of the Company presented herein as of or for
       periods prior to the merger, which are based upon its previous
       historical cost. A portion of the purchase price was allocated to
       certain intangible assets including those relating to the golf course
       operations and the operations of the resort pursuant to the rental pool
       arrangement with the condominium owners. These intangibles will
       generally be amortized on a straight line basis over a period from 5-10
       years based on the related expected period of benefit or contract term
       of the underlying rental pool arrangement.

(2)    LONG-TERM OBLIGATIONS

       As a part of the transaction referred to in Note 1, all previously
       existing long-term obligations were replaced by a mortgage note with
       Golf Trust of America, L.P. The participating mortgage is for a term of
       thirty years and is secured by certain real and personal property of the
       Company and guaranteed by GHI. The loan allows for certain additional
       borrowings for capital improvements. The loan has an initial base pay
       rate increasing annually. The loan also includes participation in
       certain revenue of the Innisbrook property securing the loan above
       certain predefined levels.

                                     Page 7


<PAGE>   8
       Long-term obligations consist of the following:

<TABLE>
<CAPTION>

                                                                  June 30,                December 31,
                                                                    1997                      1996
                                                               -------------             -------------
       <S>                                                     <C>                       <C>          
       Participating mortgage note at varying,
           increasing pay rates maturing in 2027                $ 70,775,000             $           -

       Mortgage note at 6.34%, maturing
           in 2002                                                 5,000,000                         -

       Mortgage notes at varying rates, ranging
           from 8.3% to 9%, maturing from
           1998 to 2007                                                    -                15,487,194

       Equipment revolving credit line
           at prime, maturing serially
            from 1997 to 2001                                              -                 3,891,728

       A $2,000,000 revolving credit line at 9%
           maturing in 2007                                                -                 1,368,000

       Other                                                               -                   286,386

       Unamortized debt discount and expense                               -                  (467,000)
                                                                ------------             -------------
                                                                                            20,566,308
       Less-current maturities                                             -                (2,788,764)
                                                                ------------             -------------
                                                                $ 75,775,000             $  17,777,544
                                                                ============             =============
</TABLE>

 (3)   ACCRUED EXPENSES

       Accrued expenses consist of the following:

<TABLE>
<CAPTION>
                                                                   June 30,              December 31,
                                                                     1997                    1996
                                                              --------------            --------------     
       <S>                                                    <C>                       <C>          
       Rental pool lease operations                           $    2,238,783            $   2,134,459
       Salaries                                                    2,042,857                1,456,267
       Taxes, other than income taxes                                766,724                  242,820
       Other                                                         732,721                  744,435
                                                              ---------------           -------------
                                                              $    5,781,085            $   4,577,981
                                                              ===============           =============
</TABLE>

(4)    INCOME TAX ALLOCATION AND SHARING POLICY

       Effective concurrently with the merger, the Company and GHI elected to
       be subsequently treated as S-Corporations for federal and state tax
       purposes. As a result, the Company will generally no longer be subject
       to federal and state income taxes and the tax effects of its activities
       will accrue to the shareholders of GHI. The Company will be responsible
       for entity level corporate taxes on certain built-in gains (where the
       fair market value of the related assets at the effective date the
       election was made exceeds the carryover tax basis) on property if sold
       within a ten year period. Estimated deferred tax liabilities relating to
       these potential entity level taxes, based on management's current plans,
       have been reflected in these financial statements.

                                     Page 8


<PAGE>   9


(5)        SUPPLEMENTAL CASH FLOW DATA

           The (increases) decreases in working capital other than cash are as
follows:

<TABLE>
<CAPTION>
                                                          Seven day              174 day            Six months
                                                        period ended           period ended           ended
                                                        June 30, 1997          June 23, 1997      June 30, 1996
                                                        -------------          -------------      -------------
     <S>                                                <C>                  <C>                  <C>        
     Accounts receivable                                  $   (619)            $  (3,155)           $  261,026
     Inventories and supplies                               49,751               253,620              (379,746)
     Prepaid expenses and other                             40,929               208,647               458,621
     Intercompany                                          (62,582)             (319,029)               23,237
     Accounts payable                                      (27,475)             (140,060)              220,972
     Accrued expenses                                      331,063               872,041               (88,486)
     Deposits and prepaid fees                             (89,183)             (454,635)             (479,925)
                                                        -------------          -------------      -------------  
                                                          $241,884             $ 417,429            $   15,699
                                                        =============          =============      =============  
</TABLE>

 (6) CHANGE IN INNISBROOK PROPERTY MANAGER

     Concurrently with the merger, the Company entered into an agreement to
terminate the existing Innisbrook hotel operation management agreement
effective July 15, 1997 for a $600,000 termination fee. A new hotel property
manager was engaged effective on that date. Such termination fee was included
in determining the cost of the acquisition.

                                     Page 9


<PAGE>   10


                            GOLF HOST RESORTS, INC.
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

For purposes of discussing comparative results from operations for 1996 and
1997, the results for periods prior to and subsequent to the June 23, 1997
merger transaction, described in Note 1 to the financial statements, are
combined.

For the current quarter, occupied room nights fell 2.1% from the prior year. On
a divisional basis, occupied room nights at Innisbrook rose 2.3%, while
Tamarron's room nights declined 20.1%. The increase in Innisbrook's occupancy
resulted primarily from the social segment. The decline in Tamarron's room
nights occurred mostly in the conference segment.

Revenues from resort operations increased 4.4% for the quarter. The revenue per
occupied room night totaled $332.50, a 6.6% increase over the prior year's
$311.80. Innisbrook's revenue per occupied room night increased 5.6% to
$348.47, while Tamarron's rose 4.9% to $248.64. The comparable prior year
amounts were $330.05 and $236.97, respectively. The improvement in guest
spending at both resorts offset the impact of the lower occupancy at Tamarron,
yielding a $583,000 increase in resort operations revenue. Consistent with the
prior year, there was no real estate revenue generated during the quarter.

Costs and operating expenses increased to 100.7% of revenues from 95.5%. As a
result, operating income declined $684,000 from the prior year to a loss of
$97,000. Hotel expense increased disproportionately to the occupancy change as
a result of an approximately $190,000 adjustment to related inventories. Other
costs and operating expenses rose 8.7%, or approximately $325,000. Included in
this increase was approximately $134,000 related to the ensuing property
management transition at Innisbrook. General and administrative expense
increased $439,000 over the prior year. Included in this increase are an
additional $l80,000 in costs relative to the change in control of the Company
discussed in the notes to financial statements and the above-mentioned
management transition, and an increase of $135,000 in bad debt expense.

Interest expense increased $159,000 to $640,000, primarily as a result of
additional interest from the new borrowings as a result of the merger
transactions described in Note 1 to the financial statements. In addition,
repayment of previous indebtedness of the Company resulted in an extraordinary
loss on early retirement of debt of approximately $444,000, presented net of a
related tax benefit of $155,000 primarily relating to the write-off of
unamortized debt discounts and related deferred expenses.

For the six months ended June 30, 1997, occupied room nights declined 2.3% from
the prior year level. Improved levels of spending per occupied room, up 2.2%,
served to somewhat mitigate the decline in occupancy, yielding a slight decline
in revenues of .2%. As a percentage of revenues, cost and operating expenses
rose from 85.1% to 89.3%. The reduction in income before income taxes of
$1,674,000 reflects the impact of the above items coupled with the first
quarter reduction in occupancy, related lost economies of scale relative to
operating income margin and the impact of the minimum wage hike.

FINANCIAL CONDITION AND LIQUIDITY

As more fully discussed in Note 1 to the financial statements, on June 23, 1997
all the stock of the Company and its parent GHI was acquired by previously
unrelated parties in a transaction financed by new debt obligations of the
Company. These transactions have generally resulted in improved financial
liquidity as a result of additional cash and borrowing facilities.

The Company's working capital position at June 30, 1997 was $3,845,000,
compared with $1,841,000 at June 30, 1996 and a deficit of $1,278,000 at
December 31, l996. The Company typically experiences seasonal fluctuations in
its net working capital position without impairing its ability to pay trade
creditors in a timely manner and satisfy its financial obligations in an
orderly fashion.

As a result of the change in control previously discussed, the Company's former
lenders were replaced with a single lender on June 23, 1997. Reference is made
in the notes to financial statements regarding the new lender.

While the Company has a substantial retained deficit, based on existing cash
levels, expected operating levels for the balance of the year and the existence
of credit facilities with its parent, the Company assesses its liquidity as
satisfactory.

                                    Page 10


<PAGE>   11





                          PART II - OTHER INFORMATION

Item 1.    Legal Proceedings

           Registrant is not currently involved in lawsuits other than ordinary
           routine litigation incidental to its business.

Item 2.    Changes in Securities

           Not applicable.

Item 3.    Defaults Upon Senior Securities

           Not applicable.

Item 4.    Submission of Matters to a Vote of Security Holders

           Not applicable.

Item 5.    Other Information

           Pursuant to an agreement with the SEC staff, included in this 10-Q
           filing are unaudited financial statements of the Innisbrook Rental
           Pool Lease Operation and the Tamarron Rental Pool Lease Operation
           for the quarter and six months ended June 30, 1997

Item 6.    Exhibits and Reports on Form 8-K

           (a)    Exhibits

                  27 - Financial Data Schedule (for SEC use only).

           (b)    Reports on Form 8-K

                  Form 8-K, reporting changes in control of registrant and
                  change in registrant's certifying accountant, was filed with
                  the SEC on July 8, 1997.

                                    Page 11


<PAGE>   12









                                   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.

                            GOLF HOST RESORTS, INC.


Date:    August 20, 1997                      By:/s/ Merrick Kleeman
     ---------------------                       --------------------------
                                              Merrick Kleeman
                                              President

Date:    August 20, 1997                      By:/s/ R. L. Akin
     ---------------------                       --------------------------
                                              Richard L. Akin
                                              Vice President
                                              and Treasurer


                                    Page 12


<PAGE>   13



                          RENTAL POOL LEASE OPERATIONS

The following unaudited financial statements of the Innisbrook Rental Pool
Lease Operation and the Tamarron Rental Pool Lease Operation (the Rental Pools)
are for the quarter and six months ended June 30, 1997.

The operations of the Rental Pools are tied closely to that of Golf Host
Resorts, Inc. (the Company), and provide for distribution of a percentage of
the Company's room revenues, as defined in the Rental Pool Master Lease
Agreements, to participating condominium owners (Participants).

The operations of the Rental Pools are more fully discussed in Form 10-K, for
the fiscal year ended December 31, 1996 (File No. 2-64309).

As discussed in Note 1 to the Golf Host Resorts, Inc. financial statement, on
June 23, 1997, TM Golf Hosts, Inc. ("TMGHI") acquired all of the outstanding
stock of Golf Hosts, Inc. ("GHI") and the 20% of the Company's stock not held
by GHI. Concurrently, TMGHI and GHI merged with the legal survivor being GHI.

Concurrently with the merger, the Company entered into an agreement to
terminate the existing management agreement, effective July 15, 1997, with the
current hotel operations manager for Innisbrook for a $600,000 termination fee.
A new hotel property manager was engaged effective on that date. Neither the
change in ownership nor the change in hotel managers at Innisbrook is expected
to have an adverse affect on the participants in the Rental Pools.

                                    Page 13


<PAGE>   14


                     INNISBROOK RENTAL POOL LEASE OPERATION
                                 BALANCE SHEETS
                             JUNE 30, 1997 AND 1996

                               DISTRIBUTION FUND

<TABLE>
<CAPTION>
                                                                                     1997                 1996
                                                                                -------------        ------------
                                                          ASSETS
<S>                                                                               <C>                  <C>       
RECEIVABLE FROM GOLF HOST RESORTS, INC.
    FOR DISTRIBUTION - FULLY SECURED                                              $1,982,583           $1,808,415
INTEREST RECEIVABLE FROM MAINTENANCE
    ESCROW FUND                                                                       29,522               16,784
                                                                                  ----------           ----------
                                                                                  $2,012,105           $1,825,199

                                        LIABILITIES AND PARTICIPANTS' FUND BALANCES

DUE TO PARTICIPANTS FOR DISTRIBUTION                                              $1,464,014           $1,469,054
DUE TO MAINTENANCE ESCROW FUND                                                       318,529              310,851
RESERVE FOR ESTIMATED LIFE-SAFETY
    REIMBURSEMENT                                                                    229,562               45,294
PARTICIPANTS' FUND BALANCES                                                                -                    -
                                                                                  ----------           ----------
                                                                                  $2,012,105           $1,825,199

                                                  MAINTENANCE ESCROW FUND

                                                          ASSETS

CASH AND CASH EQUIVALENTS                                                         $2,134,454           $1,345,193
INVENTORIES                                                                              -                    251
RECEIVABLE FROM DISTRIBUTION FUND                                                    318,529              310,851
INTEREST RECEIVABLE                                                                   29,135               13,260
                                                                                  ----------           ----------
                                                                                  $2,482,118           $1,669,555
                                                                                  ==========           ==========


                                        LIABILITIES AND PARTICIPANTS' FUND BALANCES

ACCOUNTS PAYABLE                                                                  $      378           $      268  
INTEREST PAYABLE TO DISTRIBUTION FUND                                                 29,522               16,784  
CARPET CARE RESERVE                                                                   34,293               45,420  
PARTICIPANTS' FUND BALANCES                                                        2,417,925            1,607,083  
                                                                                  ----------           ----------  
                                                                                  $2,482,118           $1,669,555  
</TABLE>

These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of management, include all adjustments which
are necessary for a fair presentation.

                                    Page 14


<PAGE>   15


                     INNISBROOK RENTAL POOL LEASE OPERATION
                            STATEMENTS OF OPERATIONS
          FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996

                               DISTRIBUTION FUND


<TABLE>
<CAPTION>
                                                 Current Quarter                             Year-to-Date
                                          -------------------------------           -------------------------------
                                              1997               1996                    1997              1996
                                          ------------       ------------           -------------     ------------
<S>                                       <C>                <C>                    <C>               <C>

GROSS REVENUES                            $  3,761,563       $  3,453,553           $  9,643,218      $  9,619,612
                                          ------------       ------------           ------------      ------------

REDUCTIONS:

    Agents' commissions                         54,459             84,723                157,076           203,270
    Audit fees                                   3,000              3,000                  6,100             6,100
                                          ------------       ------------           ------------      ------------
                                                57,459             87,723                163,176           209,370
                                          ------------       ------------           ------------      ------------

ADJUSTED GROSS REVENUES                      3,704,104          3,365,830              9,480,042         9,410,242
MANAGEMENT FEE                              (1,740,929)        (1,581,940)            (4,455,619)       (4,422,814)
                                          ------------       ------------           ------------      ------------
GROSS INCOME DISTRIBUTION                    1,963,175          1,783,890              5,024,423         4,987,428

ADJUSTMENTS TO GROSS INCOME
    DISTRIBUTION:
        Corporate complimentary
            occupany fees                        4,574              2,135                  8,494             5,141
        Occupancy fees                        (424,702)          (414,465)              (920,252)         (953,956)
        Advisory Committee expenses            (25,601)           (23,838)               (54,313)          (46,078)
        Life-safety reimbursement              (47,596)           (39,559)              (229,562)          (45,294)
                                          ------------       -------------          ------------      ------------

NET INCOME DISTRIBUTION                      1,469,850          1,308,163              3,828,790         3,947,241
                                                       
ADJUSTMENTS TO NET INCOME                              
  DISTRIBUTION:                                        
        Occupancy fees                         424,702            414,465                920,252           953,956
        Hospitality suite fees                   2,059              2,852                  5,081             7,181
        Greens fees                             20,890             19,546                 56,680            57,053
        Additional participation credit         17,485             18,095                 35,320            36,385
                                          ------------     --------------           ------------      ------------

AMOUNT AVAILABLE FOR DISTRIBUTION
    TO PARTICIPANTS                       $  1,934,986     $    1,763,121           $  4,846,123      $  5,001,816
                                          ============     ==============           ============      ============
    Average daily distribution            $      23.59     $        21.13           $      31.06      $      31.43
    Average room rate                     $     108.20     $       101.63           $     127.50      $     122.76
    Occupied room nights                        34,766             33,980                 75,633            78,358
    Available room nights                       80,026             83,444                156,048           159,136
    Occupancy percentage                          42.4%              40.7%                  48.5%             49.2%
    Average number of available units              901                917                    862               874
</TABLE>


        These statements were prepared from the books and records of the
      Rental Pool without audit and, in the opinion of management, include
          all adjustments which are necessary for a fair presentation.

                                    Page 15


<PAGE>   16


                        INNISBROOK RENTAL POOL OPERATION
              STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES
          FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996


<TABLE>
<CAPTION>

                                                DISTRIBUTION FUND

                                                              Current Quarter               Year-to-Date
                                                         --------------------------    ----------------------
                                                           1997             1996         1997          1996
                                                         ---------       ----------    ---------    ----------
<S>                                                    <C>            <C>            <C>              <C>      
BALANCE, beginning of period                           $      --      $      --      $      --      $      --

ADDITIONS:
    Amounts available for distribution
        before life-safety reimbursement                 1,800,617      1,802,680      4,893,720      5,047,110
    Interest received or receivable from
        Maintenance Escrow Fund                             29,522         16,784         51,584         41,131

REDUCTIONS:
    Amount withheld for Maintenance Escrow Fund           (318,529)      (310,851)      (690,194)      (715,472)
    Amounts held  in reserve for estimated
        life-safety reimbursement                          (47,596)       (39,559)      (229,562)       (45,294)
    Amounts accrued or paid to participants             (1,464,014)    (1,469,054)    (4,025,548)    (4,327,475)
                                                       -----------    -----------    -----------    -----------

BALANCE, end of period                                 $      --      $      --      $      --      $      --
                                                       ===========    ===========    ===========    ===========

                                             MAINTENANCE ESCROW FUND

BALANCE, beginning of period                           $ 2,329,421    $ 1,496,895    $ 1,734,415      1,141,259

ADDITIONS:
    Amounts withheld from occupancy fees                   318,529        310,851        690,194        715,472
    Interest earned                                         29,522         16,784         51,584         41,131
    Charges to participants to establish
        or restore escrow balances                         377,022        279,991        830,345        519,465

REDUCTIONS:
    Maintenance charges                                   (564,468)      (449,856)      (776,068)      (716,345)
    Carpet care reserve deposit                             (8,497)        (8,293)       (22,994)       (19,085)
    Interest accrued or paid to
        Distribution Fund                                  (29,522)       (16,784)       (51,584)       (41,131)
    Refunds to participants as prescribed
        by Master Lease Agreement                          (34,082)       (22,505)       (37,967)       (33,683)
                                                       -----------    -----------    -----------    -----------

BALANCE, end of period                                 $ 2,417,925    $ 1,607,083      2,417,925    $ 1,607,083
                                                       ===========    ===========    ===========    ===========
</TABLE>

           These statements were prepared from the books and records
            of the Rental Pool without audit and, in the opinion of
          management, include all adjustments which are necessary for
                              a fair presentation.

                                    Page 16


<PAGE>   17



                      TAMARRON RENTAL POOL LEASE OPERATION
                                 BALANCE SHEETS
                             JUNE 30, 1997 AND 1996


<TABLE>
<CAPTION>

                                                    DISTRIBUTION FUND
                                                                                     1997                 1996
                                                                                -------------        -------------
                                                           ASSETS
<S>                                                                             <C>                  <C>          
CASH                                                                            $       1,000        $       1,000
RECEIVABLE FROM GOLF HOST RESORTS, INC.
  FOR DISTRIBUTION                                                                    256,200              317,655
INTEREST RECEIVABLE FROM MAINTENANCE
  ESCROW FUND                                                                             132                1,147
                                                                                -------------        -------------
                                                                                $     257,332        $     319,802
                                                                                =============        =============


                                         LIABILITIES AND PARTICIPANTS' FUND BALANCES

DUE TO PARTICIPANTS FOR DISTRIBUTION                                            $     190,016        $    264,791
DUE TO MAINTENANCE ESCROW FUND                                                         67,316              55,011
PARTICIPANTS' FUND BALANCES                                                              -                    -
                                                                                -------------        ------------
                                                                                $     257,332        $    319,802
                                                                                =============        ============


                                                   MAINTENANCE ESCROW FUND

                                                           ASSETS

CASH AND CASH EQUIVALENTS                                                       $      13,301            149,252
DUE FROM DISTRIBUTION FUND                                                             67,316             55,011
INTEREST RECEIVABLE                                                                      -                   934
INVENTORY:

  Linen                                                                               114,241            114,237
  Materials and supplies                                                               17,224              8,285
DEPOSITS                                                                                 -                16,000
                                                                                -------------         ----------
                                                                                $     212,082         $  343,719
                                                                                =============         ==========


                                         LIABILITIES AND PARTICIPANTS' FUND BALANCES

ACCOUNTS PAYABLE                                                                $       5,113        $    6,493
INTEREST PAYABLE TO DISTRIBUTION FUND                                                     132             1,147
PARTICIPANTS' FUND BALANCES                                                           206,837           336,079
                                                                                -------------        ----------
                                                                                $     212,082        $  343,719
                                                                                =============        ==========
</TABLE>



These statements were prepared from the books and records of the Rental Pool
without audit and, in the opinion of management, include all adjustments which
are necessary for a fair presentation.

                                    Page 17


<PAGE>   18


                      TAMARRON RENTAL POOL LEASE OPERATION
                            STATEMENTS OF OPERATIONS

          FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996

                               DISTRIBUTION FUND


<TABLE>
<CAPTION>
                                                     Current Quarter                               Year-to-Date
                                            ----------------------------------           ---------------------------------
                                                1997                1996                       1997                1996
                                            --------------      --------------           --------------      -------------
<S>                                         <C>                 <C>                      <C>                 <C>
GROSS REVENUES                              $      579,286      $      721,149           $    1,280,976      $   1,255,511
                                            --------------      --------------           --------------      -------------

DEDUCTIONS:
    Agents' commissions                             12,418              15,781                   70,465             52,360
    Sales and marketing expenses                    46,345              61,297                  102,480            106,718
    Audit fees                                       2,600               2,601                    5,200              5,202
                                            --------------      --------------           --------------      -------------
                                                    61,363              79,679                  178,145            164,280
                                            --------------      --------------           --------------      -------------

ADJUSTED GROSS REVENUES                            517,923             641,470                1,102,831          1,091,231
MANAGEMENT FEE                                    (258,961)           (320,735)                (551,415)          (545,616)
                                            --------------      --------------           --------------      -------------
GROSS INCOME DISTRIBUTION                          258,962             320,735                  551,416            545,615

ADJUSTMENTS TO GROSS INCOME
    DISTRIBUTION:
        Corporate complimentary
            occupancy fees                             864                 903                    1,486              1,598
        Occupancy fees                             (66,586)            (67,475)                (161,703)          (124,158)
        Designated items                           (33,021)            (20,273)                 (53,932)           (33,659)
        Advisory Committee expenses                 (3,626)             (3,983)                  (7,719)            (5,763)
                                            --------------      --------------           --------------      -------------
POOLED INCOME                                      156,593             229,907                  329,548            383,633

ADJUSTMENTS TO POOLED INCOME:

        Hospitality suite fees                        -                   -                       -                     53
        Occupancy fees                              66,586              67,475                  161,703            124,158
                                            --------------      --------------           --------------      -------------

NET INCOME DISTRIBUTION                     $      223,179      $      297,382           $      491,251      $     507,844
                                            ==============      ==============           ==============      =============
    Average daily distribution              $         8.34      $        11.38           $         9.37      $        9.83
    Average room rate                       $        87.49      $        86.98           $        79.17      $       80.53
    Room nights                                      6,621               8,288                   16,180             15,587
    Occupancy percentage                              24.7%               31.7%                    30.9%              30.l%
    Average number of available units                  294                 288                      290                284
    Number of units in Rental Pool at
        end of period                                  298                 298                     -                  -
</TABLE>

        These statements were prepared from the books and records of the
      Rental Pool without audit and, in the opinion of management, include
          all adjustments which are necessary for a fair presentation.

                                    Page 18


<PAGE>   19


                      TAMARRON RENTAL POOL LEASE OPERATION
              STATEMENTS OF CHANGES IN PARTICIPANTS' FUND BALANCES
          FOR THE QUARTERS AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996



<TABLE>
<CAPTION>

                                                          DISTRIBUTION FUND

                                                                 Current Quarter                         Year-to-Date           
                                                         ---------------------------------     ---------------------------------
                                                             1997                1996              1997               1996      
                                                         -------------       -------------     -------------      --------------
<S>                                                      <C>                 <C>               <C>                <C>
BALANCE, beginning of period                             $       -            $      -          $      -           $       -     
                                                                                                                                
ADDITIONS:                                                                                                                      
    Amounts available for distribution                         223,179             297,382           491,251            507,844 
    Interest received or receivable from                                                                                        
        Maintenance Escrow Fund                                    132               1,147               385              2,327  
                                                                                                                                
REDUCTIONS:                                                                                                                     
    Amounts withheld for Maintenance Escrow Fund               (33,295)            (33,738)          (80,855)           (62,080)
    Amounts accrued or paid to participants                   (190,016)           (264,791)         (410,781)          (448,091)
                                                         -------------       -------------      ------------       ------------
                                                                                                                                
BALANCE, end of period                                   $       -            $      -          $       -          $       -     
                                                         =============       =============      ============       ============
                                                                                                                                
                                                       MAINTENANCE ESCROW FUND                                                  
                                                                                                                                
BALANCE, beginning of period                             $     210,371        $    254,070      $    197,548       $    328,336 
                                                                                                                                
ADDITIONS:                                                                                                                      
    Amounts withheld from occupancy fees                        33,295              33,738            80,855             62,080 
    Interest earned                                                132               1,147               385              2,327 
    Reimbursement of designated items                           33,021              20,273            53,932             33,659 
    Charges to participants to establish                                                                                         
        or restore escrow balances                               4,209             125,948            16,295            142,632 
                                                                                                                                
REDUCTIONS:                                                                                                                     
    Maintenance and inventory charges                          (32,756)            (51,905)          (52,228)           (88,622)
    Refurbishing charges                                        (2,237)            (17,804)          (24,668)           (93,549)
    Interest accrued or paid to                                                                                                 
        Distribution Fund                                         (132)             (1,147)             (385)            (2,327)
    Designated items                                           (33,021)            (20,273)          (53,932)           (33,660)
    Refunds to participants as prescribed                                                                                       
        by Master Lease Agreement                               (6,045)             (7,968)          (10,965)           (14,797)
                                                         --------------       -------------     ------------       ------------ 
                                                                                                                                
BALANCE, end of period                                   $     206,837        $    336,079      $    206,837       $    336,079 
                                                         =============        =============     ============       ============ 
</TABLE>

          These statements were prepared from the books and records of
              the Rental Pool without audit and, in the opinion of
         management, include all adjustments which are necessary for a
                               fair presentation.

                                    Page 19