SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB


[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 1999

                                       OR

[   ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from  ___________  to ___________

                        Commission File Number 000-02290

                             EFFICIENCY LODGE, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

       GEORGIA                                       58-0898219
----------------------------                      ----------------
(State or other jurisdiction                      (I.R.S. Employer
of incorporation or                               Identification No.)
organization)

           5342 OLD FLOYD ROAD, P.O. BOX 635, MABLETON, GEORGIA 30126
           ----------------------------------------------------------
                    (Address of principal executive offices)

                                  (770)819-0039
                 -----------------------------------------------
                (Issuer's telephone number, including area code)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 /_/ No /X/

Shares  outstanding  of  each  of  the  issuer's  classes  of  common  equity at
September 30, 1999: 18,242 shares of Common Stock, no par value.

Transitional Small Business Disclosure Format (check one)

Yes /_/      No /X/


<PAGE>
PART I - Financial Information

Item 1 - Financial Statements.

                           Efficiency Lodge, Inc.

                         CONSOLIDATED BALANCE SHEET



                                   ASSETS


                                       September 30, 1999   December 31, 1999
                                       ------------------   -----------------
                                            (Unaudited)


Property and Equipment, net                 $ 18,509,244      $ 15,121,958
Cash                                             993,608           921,220
Other Assets                                   2,008,833         1,485,114
                                            ------------      ------------

                                            $ 21,511,685      $ 17,528,292
                                            ============      ============


                    LIABILITIES AND STOCKHOLDERS' EQUITY


Mortgage Notes Payable                      $ 20,384,367      $ 18,584,016
Other Liabilities                                798,889           255,705
                                            ------------      ------------

     Total Liabilities                        21,183,256        18,839,721

Stockholders' Equity
   Common Stock                                1,104,251           104,368
   Additional Paid-In Capital                     --                52,674
   Accumulated Earnings                          895,974           179,206
   Treasury Stock                             (1,671,796)       (1,647,677)
                                            ------------      ------------

     Total Stockholders' Equity                  328,429        (1,311,429)
                                            ------------      ------------

                                            $ 21,511,685      $ 17,528,292
                                            ============      ============


<PAGE>


                                        Efficiency Lodge, Inc.

                                CONSOLIDATED STATEMENTS OF OPERATIONS
                                             (Unaudited)
<TABLE>
<CAPTION>

             For the Quarter Ended September 30, 1999 and 1998 For the Nine Months Ended
                                     September 30, 1999 and 1998



                                                   Quarter Ended              Nine Months Ended
                                                   September 30,                September 30,
                                             -------------------------    --------------------------
                                                1999           1998           1999           1998
                                             ----------    -----------    ----------      ----------
<S>                                          <C>            <C>            <C>            <C>
Revenues                                     $1,734,327     $1,430,502     $4,967,998     $3,839,287
Operating Expenses                            1,133,482        808,258      2,783,185      2,094,951
                                             ----------     ----------     ----------     ----------

     Operating Income                           600,845        622,244      2,184,813      1,744,336

Other (Income) Expense, net                     391,208        307,800      1,005,869        884,940
                                             ----------     ----------     ----------     ----------

     Earnings before Income Taxes               209,637        314,444      1,178,944        859,396

Provision for Income Taxes                      112,562         94,155        462,176        253,843
                                             ----------     ----------     ----------     ----------

     Net Earnings                            $   97,075     $  220,289     $  716,768     $  605,553
                                             ==========     ==========     ==========     ==========


Net Earnings per common share                $     5.32     $     6.33     $    39.29     $    17.41
                                             ==========     ==========     ==========     ==========

Weighted Average Number of Common
   Shares Outstanding                            18,242         34,789         18,242         34,789
                                             ==========     ==========     ==========     ==========
</TABLE>
<PAGE>

        Efficiency Lodge, Inc.

                            CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                              (Unaudited)

                                  Nine Months Ended September 30, 1999
<TABLE>
<CAPTION>

                                               Additional
                                   Common        Paid-In    Accumulated    Treasury
                                    Stock        Capital      Earnings       Stock             Total
                                   --------     --------     --------     -----------      -----------
<S>                                <C>          <C>          <C>          <C>              <C>
Balance at January 1, 1999         $104,368     $ 52,674     $179,206     ($1,647,677)     ($1,311,429)

Capital Contributions                  --        947,209         --             --             947,209

Increase in Treasury Stock             --           --           --           (24,119)         (24,119)

Reclass no par value
   common stock                     999,883     (999,883)        --             --               --

Net Income for the Nine Months         --           --        716,768           --             716,768
                                 ----------     --------     --------     -----------      -----------

Balance at September 30, 1999    $1,104,251     $   --       $895,974     ($1,671,796)     $   328,429
                                 ==========     ========     ========     ===========      ===========
</TABLE>


<PAGE>
                                     Efficiency Lodge, Inc.

                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (Unaudited)


                                Nine Months Ended September 30,

<TABLE>
<CAPTION>
                                                                   1999               1998
                                                               ------------      -------------
<S>                                                             <C>              <C>
Cash Flows from Operating Activities:
   Net Earnings (Loss)                                          $   716,768      $    605,553
   Adjustments to Reconcile Net Earnings (Loss)
     to Net Cash Provided by Operating
     Activities:
        Depreciation and Amortization                               593,766           381,886
        Changes in Assets and Liabilities:
           Other Assets                                            (313,502)         (160,008)
           Other Liabilities                                        542,619           330,284
                                                                -----------      ------------

            Net Cash Provided by Operating Activities             1,539,651         1,157,715


Cash Flows from Investing Activities:
    Loans to Others                                                (149,059)             --
    Investment Purchases                                           (288,175)             --
   Capital Expenditures                                          (1,271,833)       (5,963,056)
                                                                -----------      ------------

            Net Cash Used by Investing Activities                (1,709,067)       (5,963,056)


Cash Flows from Financing Activities:
   Purchase of Treasury Stock                                       (24,119)             --
   Principal Payments on Long-Term Debt                            (234,077)       (5,064,880)
   Proceeds from Issuance of Debt                                   500,000        10,460,000
                                                                -----------      ------------

           Net Cash Provided  by Financing Activities               241,804         5,395,120
                                                                -----------      ------------

Increase in Cash and Cash Equivalents                                72,388           589,779

Cash and Cash Equivalents, beginning of period                      921,220           169,246
                                                                -----------      ------------

Cash and Cash Equivalents, end of period                        $   993,608      $    759,025
                                                                ===========      ============


Cash Paid during the Period for:
       Interest                                                 $ 1,107,141      $    931,180
                                                                ===========      ============
       Income Taxes                                             $   127,466      $    107,961
                                                                ===========      ============
</TABLE>

<PAGE>
                             Efficiency Lodge, Inc.

         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                      Nine Months Ended September 30, 1999



NOTE A -- BASIS OF PREPARATION

         The accompanying unaudited interim consolidated financial statements of
         Efficiency Lodge, Inc. (The "Company") have been prepared in accordance
         with generally  accepted  accounting  principles for interim  financial
         statements  and with the rules and  regulations  of the  Securities and
         Exchange  Commission.  Accordingly,  they  do  not  include  all of the
         information  and footnotes  required by generally  accepted  accounting
         principles  for  complete  financial  statements.  In  the  opinion  of
         management,  all adjustments  (consisting of normal recurring accruals)
         considered necessary for a fair presentation have been included.

         The results of operations for the quarter ended  September 30, 1999 are
         not necessarily  indicative of the results that may be expected for the
         full year. The interim consolidated financial statements should be read
         in  conjunction   with  the  Company's  1998   consolidated   financial
         statements and related notes.

NOTE B -- COMMON STOCK

           On August 5, 1999 the  shareholders  authorized a reverse stock split
           of one for thirty of common  stock.  The reverse stock split has been
           presented retroactively in the financial statements.  The articles of
           incorporation  were also amended to change the common stock to no par
           value.



<PAGE>



Item 2.  Management Discussion and Analysis


         Total assets  increased  during the third quarter from  $17,528,292  on
December  31, 1998 to  $21,511,685  on  September  30,  1999.  This  increase is
primarily  the result of the  purchase of a lodge in March 1999 and the purchase
of rental  property in August 1999. The Company  purchased an  existing lodge in
Lousiville,  Georgia  on March  11,  1999 for the total  purchase  price of nine
hundred seventy-five thousand dollars ($975,000). The Company paid $475,000 cash
and obtained a $500,000 loan from Georgia State Bank. The Company  purchased the
rental property with a cost totalling $3,009,998. Mortgages totalling $1,537,564
were assumed,  note  receivables  totalling  $525,225 were cancelled and capital
contribuitons of $947,209 were recorded.  Other assets also increased due to the
capitalization of closing costs related to the lodge acquisition.

         Revenue increased during the third quarter from $1,430,502 in the third
quarter of 1998 to  $1,734,327  in 1999.  This increase can be attributed to the
addition of three lodges. Two lodges began operation during the third quarter of
1998.  One lodge is located in Kennesaw,  Georgia  (Town  Center  Lodge) and the
other is located in Columbus,  Georgia.  The third lodge located in  Louisville,
Georgia began operations in March 1999.

         Operating expenses increased in the third quarter from $808,258 in 1998
to $1,133,482  in 1999.  When a portion of the  refinancing  closed in August of
1998 the next interest  payment was not due and paid until October 1. Absent the
refinancing, under a normal monthly payment schedule,  approximately $100,000 of
interest  expense would have been paid in third quarter.  Third quarter expenses
in 1998, had this been paid, would have been approximately  $908,258 compared to
$1,133,482 in 1999.


<PAGE>

Part II - OTHER INFORMATION

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

         The Company held a special meeting of shareholders on August 5, 1999 to
consider a proposal to reduce the number of outstanding  shares of the Company's
Common Stock through a one-for-thirty  reverse split of such outstanding shares,
and to  consider  and  vote  upon an  amendment  to the  Company's  Articles  of
Incorporation   to  effect  such  a  reverse  stock  split.  Of  572,681  shares
outstanding,  526,012 were  represented at the meeting and voted in favor of the
proposal and Articles  Amendment.  No shares were voted against the proposal,and
there were no abstentions.

Item 5.  Other Information

         On August 1, 1999 the Company  purchased rental  properties from W. Ray
Barnes,  the  Company's  president,  a director  and majority  shareholder.  The
properties  consisted  of  fifty-three  single  family  residences,  four duplex
residential  properties  and one commercial  property  occupied by a convenience
store and an automobile  repair shop. Total  consideration  given by the Company
was its  assumption of  approximately  $1,538,000 in mortgages on the properties
and its cancellation of approximately  $789,000 of notes payable from Mr. Barnes
and his affiliated business. The Company received an appraisal of the properties
which  reflected a  valuation  exceeding  the  consideration  paid.  The Company
intends to continue operating the properties as rental properties.


Item 6.  Exhibits and Reports on Form 8-K

     (a) The following Exhibits are filed as part of this report:

         Exhibit
         Number                     Description
         -------                    -----------

           27                       Financial Data Schedule - (for SEC use only)



<PAGE>
                                    SIGNATURE


In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                       EFFICIENCY LODGE, INC.


DATE: November 10, 1999               By:  /s/ W. Ray Barnes
                                         W. Ray Barnes
                                         President and Chief Executive Officer


DATE: November 10, 1999               By: /s/ Bonnie L. Byers
                                         Bonnie Byers
                                         Secretary/Treasurer