<PAGE>
                    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, 1997

                                    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 30059
        ----------------------------------------------------------
                 (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
November 10, 1997:  1,026,880 shares of Common Stock, $0.10 par value share.

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



<TABLE>
<CAPTION>
                                  ASSETS


                                                                    September 30, 1997     December 31, 1996
                                                                    ------------------     -----------------
                                                                                    (Unaudited)

<S>                                                                     <C>                   <C>
Property and equipment, net                                             $10,468,025           $  8,844,764
Cash                                                                        550,176                159,944
Other assets                                                              1,294,084              1,532,390
                                                                        -----------            -----------
                                                                        $12,312,285           $ 10,537,098
                                                                        ===========           ============


                                                      LIABILITIES AND STOCKHOLDERS' EQUITY



Mortgage notes payable                                                  $11,381,977            $10,038,389
Other liabilities                                                           772,368                503,251
                                                                        -----------            -----------
    Total liabilities                                                    12,154,345             10,541,640

Stockholders' equity
  Common stock                                                              102,688                102,688
  Additional paid-in capital                                                 52,674                 52,674
  Accumulated earnings                                                        2,578               (159,904)
                                                                        -----------            -----------
    Total stockholders' equity                                              157,940                (4,542)
                                                                        -----------            -----------
                                                                        $12,312,285            $10,537,098
                                                                        ===========            ===========
/TABLE
<PAGE>
                          Efficiency Lodge, Inc.

              CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                              (Unaudited)
<TABLE>
<CAPTION>
                                                      Nine months ended September 30, 1997
                                              ---------------------------------------------------------------
                                                                Additional
                                                Common           paid-in       Accumulated
                                                stock            capital         earnings           Total
                                                ------          ----------     -----------          -----
<S>                                           <C>              <C>              <C>                <C>
Balance at January 1, 1997                    $102,688         $  52,674        $ (159,904)        $  (4,542)

Net income for the nine months                    --                --             162,482           162,482
                                              --------          --------        ----------         ---------
Balance at September 30, 1997                 $102,688         $  52,674        $    2,578         $ 157,940
                                              ========         =========        ==========         =========
/TABLE
<PAGE>
                          Efficiency Lodge, Inc.

                 CONSOLIDATED STATEMENTS OF OPERATIONS
                               (Unaudited)

            For the Quarters Ending September 30, 1997 and 1996
          For the Nine Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>

                                                     Quarter Ended                  Nine Months Ended
                                                 September 30, 1997                 September 30, 1997
                                                  1997             1996            1997            1996 
                                             -----------       ----------       -----------      ----------
<S>                                          <C>               <C>              <C>              <C>
Revenues                                     $ 1,215,235       $1,079,720       $3,215,538       $3,082,297
Operating expenses                               703,689          614,833        2,049,225        1,761,794
                                             -----------        ---------       ----------        ---------
    Operating income                             511,546          464,887        1,166,313        1,320,503

Other (income) expense, net                      291,527          267,230          897,905          766,543
                                             -----------        ---------       ----------        ---------
    Earning (loss) before income 
      taxes                                      220,019          197,657          268,408          553,960

Provision for income taxes                        82,317              --           105,926            -- 
                                             -----------      -----------       ----------       ----------
    Net earnings (loss)                      $   137,702      $   197,657      $   162,482      $   553,960
                                             ===========      ==========       ===========      ===========
Net earnings (loss) per common
    share                                    $       .13      $    219.62      $       .16      $    615.51
                                             ===========      ==========       ===========      ===========
Weighted average number of 
    common shares outstanding                  1,026,880             900        1,026,880              900
                                             ===========      ==========       ===========      ===========
Historical earnings before income
    taxes                                                     $  197,657                        $  553,960

Pro forma income tax expense                                      71,000                           211,000
                                                              ----------                         ---------
Pro forma net earnings                                        $  126,657                        $  342,960
                                                              ==========                        ==========
Pro forma earnings per share                                  $    140.73                       $   391.01
/TABLE
<PAGE>

                          Efficiency Lodge, Inc.

                  CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)

                     Nine months ended September 30,
<TABLE>
<CAPTION>
                                                                        1997                 1996
                                                                    -----------          -----------
<S>                                                                 <C>                  <C>
Cash flows from operating activities:
  Net earnings (loss)                                               $   162,482          $   553,960
  Adjustments to reconcile net earnings (loss) to
    to net cash provided by operating activities:
       Depreciation and amortization                                    297,389              284,540
     Changes in assets and liabilities:
       Other assets                                                     (96,844)             (54,984)
       Other liabilities                                                269,175              247,763
       Loss on sale of asset                                             46,953                 --
                                                                    ------------           ---------
          Net cash provided by operating activities                     679,155            1,031,279

Cash flows from investing activities:
  Capital expenditures                                               (1,664,794)             (16,534)
  Increase in due from stockholders                                        --                (90,681)
  Increase in advance to affiliate                                      (52,165)            (233,500)
  Proceeds from sale of building                                         84,448                  --
                                                                    ------------           ---------
          Net cash used for investing activities                     (1,632,511)            (340,715)

Cash flows from financing activities:
  Principal payments on long-term debt                                 (318,449)            (255,082)
  Due to stockholders                                                       --               (30,000)
  Cash distributions to stockholders                                        --              (210,000)
  Proceeds from issuance of debt                                      1,700,000                  --
  Payoff of note on building sold                                       (37,963)                 --
                                                                    ------------           ---------
          Net cash provided (used) be financing activities            1,343,588             (495,082)
                                                                    ------------           ---------
Increase (decrease) in cash and cash equivalents                        390,232              195,482

Cash and cash equivalents, beginning of period                          159,944               84,064
                                                                    ------------          ----------
Cash and cash equivalents, end of period                            $   550,176           $  279,546
                                                                    ===========           ==========
Cash paid during the period for interest                            $   888,264           $  732,116
                                                                    ===========           ==========
</TABLE>

During the three month period ended March 31, 1997, advances to an
affiliate totaling $265,095 were forgiven in connection with the purchase
of a facility from the affiliate.

During the three month period ending June 30, 1997, a building was sold
which had a cost of $132,626 and accumulated depreciation of $1,225.

<PAGE>
                    MANAGEMENT DISCUSSION AND ANALYSIS


   Comparison of fixed assets from December 31, 1996 shows an
increase which is attributable to the acquiring and equipping of
DeKalb Lodge which opened on March 1, 1997.  The assumption of
the DeKalb debt at Columbus Bank and Trust was also the reason
for the increase in the mortgage debt.  The increase in other
liabilities compared to December 31 was the result of expenses
incurred in the opening of DeKalb Lodge and as result of the
merger with Southern Acceptance.

   Revenue for the quarter ending September 30, was $1,215,235
compared to $1,079,720 for the same quarter in 1996.  On a store
to store basis, excluding DeKalb Lodge which opened in the first
quarter of 1997, the revenue for the quarter was $1,004,423
compared to $1,079,720 in the same quarter in 1996.  Revenue for
the 9 months ending September 30 was $3,215,538 compared to
$3,082,297 for the same period in 1996.  Excluding DeKalb, the
revenue was $2,731,038 compared to $3,082,297 for the same period
in 1996.  Revenue was down most dramatically in the first
quarter, and has stabilized and improved since such time. 
Decrease in revenue can be attributed to a wet winter, a decrease
in construction workers and an end to the Olympics.  Overbuilding
from  the Olympics and the absorption caused by increased
competition is also a factor.

   General and Administrative Expenses for the quarter ending
September 30 were $1,010,538 compared to $986,182 for the same
quarter in 1996.  The greatest increase in expenses was an
increase in accounting, advertising, maintenance supplies,
management fees, repairs and maintenance, subcontractors, and
utilities.  These increases were connected with the merger with
Southern Acceptance which was completed December 31, 1996, the
addition of DeKalb Lodge or normal repair and maintenance of the
existing lodges.

   Earnings before income tax expense for the quarter was
$220,019 compared to $197,657 for the same quarter in 1996.  This
increase can be attributed to the addition of DeKalb Lodge.  Net
earnings for the quarter was $137,702 compared to $197,657 for
the same quarter in 1996.  The decrease can be attributed to
income tax expense.  In 1996, the company was an S corporation
and did not incur a tax expense.

An additional lodge is under construction in Columbus, Georgia
financed by Columbus Bank and Trust.  Opening is anticipated
during the first quarter of 1998.<PAGE>
                      Efficiency Lodge, Inc.

  NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

               Nine months ended September 30, 1997


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,
 1997 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
 1997 consolidated financial statements and related notes.

NOTE B - NEW ACCOUNTING PRONOUNCEMENT

 The FASB has issued Statement of Financial Accounting Standards
 No. 128, EARNINGS PER SHARE,  which is effective for financial
 statements issued after December 15, 1997.  Early adoption of
 the new standard  is not permitted.  The new standard eliminates
 primarily and fully diluted earnings per share and requires
 presentation of basic and diluted earnings per share together
 with disclosures of how the per share amounts were computed.
 The adoption of this new standard is not expected to have a
 material impact on the disclosure  of earnings per share  in the
 financial statements.

NOTE C - PRO FORMA RESULTS OF OPERATIONS

 On December 31, 1996, the Company merged with Southern
 Acceptance Corporation, Inc. (SAC).   The merger was recorded
 under the purchase method of accounting with ELI being
 considered the acquiring  company.  SAC's results of operations
 have been included in the Company's statement of operations
 from the date of acquisition.  Accordingly, the three
 accompanying historical results of operations for the nine
 months ended September 30, 1996 and six months ended September 30,
 1996 do not include SAC's results of operations.

 The following pro forma results of operations for the nine
 months ended September 30, 1996 are unaudited and were prepared
 under the assumption that the merger with SAC occurred on
 January 1, 1996 and that the Company was a taxable entity.
 These pro forma amounts are not necessarily indicative of what
 the actual results of operations might have been if merger had
 occurred at the beginning of fiscal year 1996.

   Net earnings                         $   342,960
   Earnings per share                   $    381.07
<PAGE>
PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a)  The following Exhibits are filed as of 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, 1997      By:  /s/ W. Ray Barnes
                                   W. Ray Barnes
                                   President and Chief Executive
                                   Officer


DATE:  November 10, 1997      By:  /s/ Roy E. Barnes
                                   Roy E. Barnes
                                   Secretary/Treasurer
                                   (Principal Financial and Accounting
                                   Officer)