<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUDITED
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENT OF OPERATIONS OF
ALTERNATIVE LIVING SERVICIES, INC., FILED WITH THE COMPANY'S FORM 10-K FOR THE
PERIOD ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS AND RELATED FOOTNOTES.  THE FOLLOWING RESTATED
FINANCIAL DATA SCHEDULES HAVE BEEN PROVIDED TO RESTATE ALL PREVIOUS FILED
FINANCIAL DATA SCHEDULES GIVING EFFECT TO THE STERLING MERGER WHICH HAS BEEN
ACCOUNTED FOR AS A POOLING-OF-INTERESTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000

<S>                             <C>                     <C>                     <C>
<PERIOD-TYPE>                   YEAR                   9-MOS                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996             DEC-31-1996             DEC-31-1996
<PERIOD-START>                             JAN-01-1996             JAN-01-1996             JAN-01-1996
<PERIOD-END>                               DEC-31-1996             SEP-30-1996             JUN-30-1996
<CASH>                                          39,455                  42,599                  42,038
<SECURITIES>                                         0                       0                       0
<RECEIVABLES>                                    2,032                   1,177                   1,298
<ALLOWANCES>                                         0                       0                       0
<INVENTORY>                                          0                       0                       0
<CURRENT-ASSETS>                                52,364                  65,105                  56,180
<PP&E>                                         138,232                 139,615                 101,647
<DEPRECIATION>                                   5,310                     727                     558
<TOTAL-ASSETS>                                 204,353                 218,127                 172,624
<CURRENT-LIABILITIES>                           31,832                  26,318                  26,057
<BONDS>                                         68,625                  92,718                  85,532
<PREFERRED-MANDATORY>                                0                       0                       0
<PREFERRED>                                          0                       0                       0
<COMMON>                                       104,324                 105,264                  62,093
<OTHER-SE>                                    (13,260)                (12,148)                (10,089)
<TOTAL-LIABILITY-AND-EQUITY>                   204,353                 218,127                 172,624
<SALES>                                         55,637                  35,289                  18,027
<TOTAL-REVENUES>                                55,637                  35,289                  18,027
<CGS>                                                0                       0                       0
<TOTAL-COSTS>                                   61,354                  39,826                  21,708
<OTHER-EXPENSES>                                     7                      35                       7
<LOSS-PROVISION>                                     0                       0                       0
<INTEREST-EXPENSE>                               3,231                   2,448                   1,124
<INCOME-PRETAX>                                (8,955)                 (7,052)                 (4,845)
<INCOME-TAX>                                     (159)                   (159)                   (159)
<INCOME-CONTINUING>                            (8,796)                 (6,893)                 (4,686)
<DISCONTINUED>                                       0                       0                       0
<EXTRAORDINARY>                                      0                       0                       0
<CHANGES>                                            0                       0                       0
<NET-INCOME>                                   (8,796)                 (6,893)                 (4,686)
<EPS-PRIMARY>                                   (0.57)                  (0.48)                  (0.35)
<EPS-DILUTED>                                   (0.57)                  (0.48)                  (0.35)


</TABLE>