SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549


                             FORM 10-Q


     Quarterly report pursuant to Section 13 or 15 (d) of the
                 Securities Exchange Act of 1934.


          For the quarterly period ended March 31, 2000.

                   Commission file number 0-7107


                   Southern Scottish Inns, Inc.



        LOUISIANA                                    72-0711739
  (State or other jurisdiction of                   (IRS Employer
 (Incorporation or organization)               Identification No.)

           1726 Montreal Circle, Tucker, Georgia   30084
       (Address of principal executive offices)   (Zip Code)




Registrant's telephone number, including area code   770-938-5966


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 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has be subject to such filing requirements
for the past 90 days.

                      Yes          X  No


Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

    Date                   Class                Outstanding


December 31, 1999       Common Stock          2,365,284 Shares

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<CAPTION>

               SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS

                                  ASSETS

                                  March 31      December 31
                                    2000            1999
                                (unaudited)      (audited)

CURRENT ASSETS:
<S>                         <C>               <C>
Cash                         $   27,970.88     $    75,253
Accounts Receivable - Net     1,235,591.46       1,124,962
Accounts Receivable - Affiliates568,988.12         580,403
Income Tax Receivable             9,310.00           9,310
Mortgages & Notes - Affiliates  186,119.12         121,240
Mortgages & Notes Receivable    539,743.97         688,072
Inventory                        40,535.99          40,819
Prepaid Expenses                 46,051.54          50,098
Loans - Employees                 5,923.94             213
Interest Receivable             475,005.12         464,505
Deferred Tax Asset                7,447.00           7,447

  Total Current Assets:     $ 3,144,687.14     $ 3,162,322


PROPERTY, PLANT & EQUIPMENT:

Land                        $ 1,515,117.93     $ 1,515,118
Buildings & Building
    Improvements              2,108,289.69       2,149,732
Furn. Fixtures & Equip.         568,195.40         561,128
Leasehold Improvements           44,346.44             331

  Total Prop. & Equipment:    4,235,949.46       4,226,309
Less:  Accum. Depreciation   (1,158,854.52)     (1,123,004)

  Total Prop. & Equip.(net):$ 3,077,094.94     $ 3,103,305

OTHER ASSETS:

Mortg. & Notes Receivable   $ 5,199,923.71     $ 5,030,468
Mortg. & Notes - Affiliates     873,896.72       1,116,802
Investments in
   Unconsolidated Affiliates    305,521.73         119,832
Investments in Affiliates       119,896.05         188,896
Investments in Real Estate      211,908.67         235,752
Trademarks - Net                 1,295,688       1,295,688
Organizational Costs              9,539.68           9,540
Deposits                          4,497.64           4,498
Deferred Tax Asset                3,625.50               0
Marketable Equity Securities     26,676.00          26,676

  Total Other Assets:       $ 8,051,173.70     $ 8,038,152

TOTAL ASSETS:              $ 14,272,955.78    $ 14,303,779


               SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS
                   LIABILITIES AND STOCKHOLDER'S EQUITY

                                  March 31      December 31
                                    2000           1999
CURRENT LIABILITIES:

Accounts Payable - Trade    $   127,477.03     $   106,097
Interest Payable                172,309.53         174,668
Taxes Payable                   107,762.11         179,260
Other Taxes Payable             183,215.61         189,683
Other Liabilities               472,516.89         546,982
Mortgages & Notes Payable       600,570.00         482,843
Mortgages & Notes Payable
   - Affiliates                 154,019.22         118,327
Deferred Severance Pay           12,000.00          12,000

  Total Current Liabilities:$ 1,829,870.39     $ 1,809,860

LONG TERM LIABILITIES

Mortgages & Notes Payable   $ 1,231,841.18     $ 1,308,603
Mortgages & Notes Payable
    - Affiliates                174,680.13         357,178
Escrow - Advance
    Construction Draw            16,729.90          15,000

  Total Long Term Liabilities 1,423,251.21       1,680,781

DEFERRED AMOUNTS

Deferred Income - Installment$ 1,511,361.00    $ 1,511,361
Deferred Income Taxes            187,917.00        101,839
Deferred Severance Pay           143,750.00        143,750

  Total Deferred Amounts:   $ 1,843,028.00     $ 1,756,950

Total Liabilities &
  Deferred Amounts:         $ 5,096,149.60     $ 5,247,591





Minority Interest               823,003.97         823,004

STOCKHOLDER'S EQUITY:

Common Stock-No Par Value Auth.
5,000,000 Sh. Issued &
Outstanding 2,349,729       $ 6,023,315.00     $ 6,023,315
Paid-In Capital                  42,201.00          42,201
Retained Earnings             2,167,668.00       2,167,668
Current Year's Income           120,618.21

  Total Stockholder's Equity  8,353,802.21       8,233,284


TOTAL LIABILITIES &
  STOCKHOLDER'S EQUITY:     $14,272,955.78     $14,303,779



               SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF INCOME
                               (UNAUDITED)


                                 FOR THE
                            THREE MONTHS ENDED
                                 March 31
          December 31

                                   2000            1999

                                                 (Audited)

REVENUES:

Franchising Revenues          $ 442,901.41     $ 1,833,472
Financing Revenues              115,329.67         620,325
Sale of Furniture                        0             439
Operating Lease Income          110,860.84         507,064
Gain on Sale of Assets           43,922.87         134,096
Investment Income                 1,100.00               0
Legal Settlement Income          48,875.24          62,356
Other Income                       8833.36         374,697

  Total Revenues:             $ 771,823.39     $ 3,532,449


COSTS AND EXPENSES:

Operating Expense
    - Franchise Division      $ 474,558.06     $ 1,595,417
Operating Expense
    - Financing & Investing     103,853.15       1,024,330
Cost of Sales - Furniture                0           4,174
Interest Expense                 51,973.78         256,347
Depreciation & Amortization      16,440.64         238,590
Investment Loss                          0         165,044

  Total Costs & Expenses      $ 646,825.63     $ 3,283,902

Income (Loss) from
   Continuing Operations Before
   Taxes & Extraordinary Items  124,997.76         248,547

Less: Provisions for-Inc. Taxes  (2,693.12)       (171,439)

Income (Loss) before
    Minority Interest            122,304.64         131,108

Less: Minority Interest- Inc.
   (Loss) of Cons. Subsidiaries    (1686.43)        (25,877)

NET INCOME (LOSS):             $ 120,618.21        $ 105,231

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                             NOTE TO FORM 10 Q

A summary of the registrant's significant accounting policies is set forth
in Note 1 to the consolidated financial statements of the registrant and
its subsidiaries in the registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1997, filed with the Securities and Exchange
Commission, which report should be read in conjunction with this interim
report.

In the opinion of management, the accompanying interim financial statements
reflect all adjustments which are necessary to a fair statement of the
results for the interim periods presented.



Item 6.  Exhibits and Reports on Form 8-K.

    No exhibits are required to be furnished in accordance with 17 C.F.R.
Section 229.601.



                                SIGNATURES
                           (Originals on File)

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 hereunto duly authorized.


                                  SOUTHERN SCOTTISH INNS, INC.


Date:  April 13, 2000                             By:
                                            Jack M. Dubard, President
                                            (Chief Financial Officer)


Date:  April 13, 2000                             By:
                                            Mary R. Dubard, Corp.
                                            Secretary