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, 2000

                                       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 / X /       No /   /

Shares outstanding of each of the issuer's classes of common equity at September
30, 2000: 21,697 shares of Common Stock, $6.97 per value share.

Transitional Small Business Disclosure Format (check one)

Yes /   /       No / X /

<PAGE>

                             Efficiency Lodge, Inc.

                                     INDEX

                                                                        PAGE NO.


PART I.   FINANCIAL INFORMATION

         Consolidated Balance Sheets of Financial Position at
           September 30, 2000 and December 31, 1999                          1

         Consolidated Statements of Operations (Unaudited) for the
           Quarters Ended September 30, 2000 and 1999 and for the
           Nine Months Ended September 30, 2000 and 1999                     2

         Consolidated Statements of Stockholders' Equity (Unaudited)
           for the Nine Months Ended September 30, 2000                      3

         Consolidated Statements of Cash Flows (Unaudited) for the
           Nine Months Ended September 30, 2000                              4

         Notes to Interim Consolidated Financial Statements (Unaudited)
           for the Nine Months Ended September 30, 2000                      5

Management's Discussion and Analysis or Plan of Operation                    6


II - OTHER INFORMATION                                                       7


SIGNATURES                                                                   8



                                      -i-

<PAGE>

                             Efficiency Lodge, Inc.

                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

<TABLE>
<CAPTION>
                                                            September 30, 2000     December 31, 1999
                                                            ------------------     -----------------
                                                               (Unaudited)
<S>                                                             <C>                   <C>
Property and Equipment, net                                     $26,747,500           $25,658,617
Cash                                                                676,031               237,091
Other Assets                                                      1,704,151             1,567,053
                                                              --------------        --------------

                                                                $29,127,682           $27,462,761
                                                              ==============        ==============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Mortgage Notes Payable                                          $28,465,551           $27,703,427
Other Liabilities                                                   544,035               722,950
                                                              --------------        --------------

     Total Liabilities                                           29,009,586            28,426,377

Stockholders' Equity
   Common Stock - no par value, 250,000
       shares authorized; 34,790 shares issued                      280,534               159,613
   Accumulated Earnings                                           1,300,880               797,105
   Other Comprehensive Gain (Loss)                                   25,560               (52,427)
                                                              --------------        --------------
                                                                  1,606,974               904,291
    Less 13,093 and 16,426 shares of common
       stock in treasury at cost at September 30, 2000
       and December 31, 1999, respectively                       (1,488,878)           (1,867,907)
                                                              --------------        --------------
                                                                    118,096              (963,616)
                                                              --------------        --------------

                                                                $29,127,682           $27,462,761
                                                              ==============        ==============
</TABLE>



                                      -1-

<PAGE>
                             Efficiency Lodge, Inc.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

               For the Quarters Ended September 30, 2000 and 1999
          For the Nine Month Periods Ended September 30, 2000 and 1999

<TABLE>
<CAPTION>
                                                          Quarters Ended                         Nine Months Ended
                                                          September 30,                            September 30,
                                                  2000                 1999                 2000                 1999
                                            -----------------    -----------------    -----------------    -----------------
<S>                                               <C>                  <C>                  <C>                  <C>
Revenues                                          $2,175,399           $1,734,327           $6,235,878           $4,967,998
Operating Expenses                                 1,416,628            1,133,482            3,758,381            2,783,185
                                            -----------------    -----------------    -----------------    -----------------

     Operating Income                                758,771              600,845            2,477,497            2,184,813

Other (Income) Expense, net                          497,142              391,208            1,668,325            1,005,869
                                            -----------------    -----------------    -----------------    -----------------

     Earnings before Income Taxes                    261,629              209,637              809,172            1,178,944

Provision for Income Taxes                           110,309              112,562              305,397              462,176
                                            -----------------    -----------------    -----------------    -----------------

     Net Earnings                                   $151,320              $97,075             $503,775             $716,768
                                            =================    =================    =================    =================

Net Earnings per common share                          $6.97                $5.32               $25.38               $39.29
                                            =================    =================    =================    =================

Weighted Average Number of Common
   Shares Outstanding                                 21,697               18,242               19,848               18,242
                                            =================    =================    =================    =================
</TABLE>


                                      -2-

<PAGE>

                             Efficiency Lodge, Inc.

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                   (Unaudited)

                      Nine Months Ended September 30, 2000


<TABLE>
<CAPTION>
                                         Outstanding     Stock        Earnings       Gain (Loss)         Stock           Total
                                        -------------  -----------  --------------  --------------  ---------------   -------------
<S>                                           <C>        <C>           <C>                <C>          <C>                <C>
Balance at December 31, 1999                  18,364     $159,613        $797,105        ($52,427)     ($1,867,907)      ($963,616)

Exchange of 3,333 Treasury
  Shares for Note Payable                      3,333      120,921               -               -          379,029         499,950

Other Comprehensive Gain (Loss)
  Unrealized Net Gain on Investments               -            -               -          77,987                -          77,987

Net Income for the Nine Months                     -            -         503,775               -                -         503,775
                                        -------------  -----------  --------------  --------------  ---------------   -------------

Balance at September 30, 2000                 21,697     $280,534      $1,300,880         $25,560      ($1,488,878)       $118,096
                                        =============  ===========  ==============  ==============  ===============   =============
</TABLE>


                                      -3-

<PAGE>
                             Efficiency Lodge, Inc.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                         Nine Months Ended September 30,
<TABLE>
<CAPTION>
                                                                       2000                 1999
                                                                 -----------------    ------------------
<S>                                                                    <C>                   <C>
Increase (Decrease) in Cash
Cash Flows from Operating Activities:
   Net Earnings                                                         $503,775              $716,768
   Adjustments to Reconcile Net Earnings
     to Net Cash Provided by Operating
     Activities:
        Depreciation and Amortization                                    865,862               593,766
        Gain on Sale of Fixed Assets                                    (143,110)                    -
        Changes in Assets and Liabilities:
           Other Assets                                                  137,567              (313,502)
           Other Liabilities                                            (133,274)              542,619
                                                                  ---------------       ---------------

            Net Cash Provided by Operating Activities                  1,230,820             1,539,651

Cash Flows from Investing Activities:
   Payments Received on Notes Receivable                                   3,050                     -
   Loan to Others                                                       (250,000)             (149,059)
   Investment Purchases                                                        -              (288,175)
   Capital Expenditures                                               (2,004,458)           (1,271,833)
   Proceeds from Sale of Fixed Assets                                    243,000                     -
                                                                  ---------------       ---------------

            Net Cash Used by Investing Activities                     (2,008,408)           (1,709,067)

Cash Flows from Financing Activities:
   Payments for Purchase of Treasury Stock                               (45,548)              (24,119)
   Principal Payments on Long-Term Debt                                 (512,462)             (234,077)
   Proceeds from Issuance of Debt                                      1,774,538               500,000
                                                                  ---------------       ---------------

           Net Cash Provided by Financing Activities                   1,216,528               241,804
                                                                  ---------------       ---------------

Increase in Cash and Cash Equivalents                                    438,940                72,388

Cash and Cash Equivalents, beginning of period                           237,091               921,220
                                                                  ---------------       ---------------

Cash and Cash Equivalents, end of period                                $676,031              $993,608
                                                                  ===============       ===============


Cash Paid during the Period for Interest                              $1,827,682            $1,107,141
                                                                  ===============       ===============

Cash Paid during the Period for Income Taxes                            $287,397              $127,466
                                                                  ===============       ===============
</TABLE>

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES

On June 1, 2000,  the Company  exchanged  $499,950 of a note  payable into 3,333
shares of common stock, which were previously held in treasury.


                                      -4-

<PAGE>


                             Efficiency Lodge, Inc.

         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                      Nine Months Ended September 30, 2000




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, 2000 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  1999   consolidated   financial
         statements and related notes.

NOTE B -- BASIC EARNINGS PER SHARE

         Basic earnings per share is computed using the weighted  average number
         of shares of common stock  outstanding.  The weighted average number of
         shares of common stock have been retroactively  restated to account for
         the 1 for 30 reverse stock split effective August 5, 1999.




                                      -5-
<PAGE>

Item 2.  MANAGEMENT DISCUSSION AND ANALYSIS


         Total assets  increased  during the third quarter from  $27,462,761  on
December  31, 1999 to  $29,127,682  on  September  30,  2000.  This  increase is
primarily  due to the  purchase of a lodge  located in Austell,  Georgia  during
third quarter 2000.  The Austell  lodge was  purchased for  $1,700,000  and debt
incurred  for the same  amount.  Total  liabilities  increased  during the third
quarter from  $28,426,377  on December 31, 1999 to  $29,009,586 on September 30,
2000.  Mortgage  notes  payable had a net  increase  of $762,124  due to several
factors.  Mortgage debt increased $1,774,538 as the result of the acquisition of
the Austell  lodge and a rental  property.  Mortgage  debt  decreased due to the
reduction  of a note for  $499,950 in exchange  for 3,333 shares of common stock
previously  held in treasury and principal  payments of $512,462 made during the
year. Other liabilities  decreased  $178,915 due to the reduction in the federal
and state income tax liability.

         Revenue  increased  during the third quarter from $1,734,327 in 1999 to
$2,175,399 in 2000. Revenue increased from $4,967,998 to $6,235,878 for the nine
months ended September 30, 1999 and 2000,  respectively.  The increase is due to
the revenue generated by the new properties  acquired since the third quarter of
1999. Since the third quarter of 1999, the Company has acquired three lodges, 56
single family residences,  four duplex residential properties and one commercial
property occupied by a convenience store and an automobile repair shop.

         Operating  expenses  increased in the third quarter from  $1,133,482 in
1999 to $1,416,628 in 2000.  Operating  expenses  increased  from  $2,783,185 to
$3,758,381 for the nine months ended September 30, 1999 and 2000,  respectively.
An increase in depreciation  expense,  personnel cost and repair and maintenance
account for the majority of the increase.  These  expenses  increased due to the
new properties  acquired  since third quarter 1999. Net other expense  increased
from $391,208 in 1999 to $497,142 in 2000.  The increase is primarily due to the
increase  in  interest  expense  in the  third  quarter  2000  of  approximately
$172,000.  Interest  expense  increased  in  2000  because  of the  debt  on the
properties  acquired  since the  third  quarter  of 1999.  A gain on the sale of
rental  properties  was  also  recognized  during  the  third  quarter  2000  of
approximately  $99,000. Net other expense increased from $1,005,869 for the nine
months  ended  September  30,  1999 to  $1,668,325  for the same period in 2000.
During the nine months  ended  September  30, 2000  interest  expense  increased
approximately  $720,500  and the  gain on the  sale of  fixed  assets  increased
$143,110.




                                      -6-


<PAGE>

Part II - OTHER INFORMATION

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)


     (b) Reports on Form 8-K

         None



                                      -7-

<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, 2000                   By: /s/ W. Ray Barnes
                                             -----------------------------------
                                          W. Ray Barnes
                                          President and Chief Executive Officer


DATE: November 10, 2000                   By: /s/ Bonnie L. Byers
                                             -----------------------------------
                                             Bonnie Byers
                                             Secretary/Treasurer



                                      -8-