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

          ( X ) Quarterly Report Under Section 13 or 15(d) of
                The Securities Exchange Act of 1934

                For the Quarterly period Ended: January 31, 1999.          
                                   OR
          (  )  Transition Report Under Section 13 or 15(d)
                The Securities Exchange Act of 1934

          Commission File Number O-2825

                            SWISS CHALET, INC.
          (Exact name of Registrant as specified in its charter)

          COMMONWEALTH OF PUERTO RICO          66-020-0307
          (State or other jurisdiction of    (I.R.S. Employer
          Incorporation or Organization)      Identification No.)

                            105 De Diego Avenue
                       Santurce, Puerto Rico  00911
           (Address of principal executive offices)   (Zip Code)

                               (787)721-1200
           (Registrant's telephone number, including area code)

                                 Unchanged
(Former name, former address and former fiscal year, if changed since last
report)

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 requirements for the past 90 days.

Yes__X___ No ______

Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Sections 12,13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court.

Yes__X___ No______

Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock as of the latest practical date :

Number of shares of Common Stock outstanding at February 25,1999
: 1,401,162







                       PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL INFORMATION



                            SWISS CHALET, INC.
                      CONDENSED STATEMENTS OF INCOME
              FOR THE NINE MONTHS ENDED JANUARY 1999 AND 1998    

                           (UNAUDITED) - NOTE A


                      NINE MONTHS ENDED         THREE MONTHS ENDED
                         JANUARY 31                  JANUARY 31
                     1999         1998         1999         1998
                    _____________________    _______________________

Net Sales and       $3,867,134    $3,774,617  $1,648,154   $1,370,576
Other Income


COST AND EXPENSES

Cost of Sales           58,464        63,559      23,342      21,698

Operating Expenses   2,757,827     2,722,141   1,003,124     947,010       
and other deductions     

Interest Expense          -             -            -           -     

NET INCOME          $1,050,843       988,917     621,688     401,868



Weighted Average     1,401,162     1,401,162   1,401,162    1,401,162
Number of Common
Shares Outstanding

NET INCOME PER SHARE     0.75c         0.71c       0.44c        0.29c 

                                                                           







                                    -1- 


               
                            SWISS CHALET, INC.
                          CONDENSED BALANCE SHEET
                             JANUARY 31, 1999
                           (UNAUDITED) - NOTE A

                                                  JANUARY 31
                                                    1999
                                                  __________
ASSETS


CURRENT ASSETS
     Cash and Cash equivalents                    $1,781,785     
     Securities held to maturity                   1,057,631     
     Accounts Receivable, Net                        461,719     
     Inventories                                      20,849
     Other Current Assets                             41,727
                                                  __________
TOTAL CURRENT ASSETS                              $3,363,711
                 
INVESTMENT IN CONDOMINIUM AND LAND                 
PROPERTY, PLANT AND EQUIPMENT, Net                 3,528,855

OTHER ASSETS                                         114,225
                                                  __________
TOTAL ASSETS                                      $7,006,791
                                                  __________

LIABILITIES AND SHAREHOLDER'S EQUITY


CURRENT LIABILITIES

     Accounts Payable and Accrued Expenses        $  598,496
     Dividends Payable                               115,992 
                                                  __________
TOTAL CURRENT LIABILITIES                         $  714,488

Deferred Compensation Liability                      106,700   

SHAREHOLDER'S EQUITY,

     Common Stock at stated value                 $  700,581
     Additional paid in capital                       24,069
     Retained Earnings                             5,460,953
                                                  __________
                                                  $6,185,603
                                                  __________
TOTAL LIABILITIES                                 $7,006,791
                                                  __________

                                    -2-


                            SWISS CHALET, INC.

               CONDENSED STATEMENTS OF CHANGES IN CASH FLOWS
                                     
            FOR THE NINE MONTHS ENDED JANUARY 31, 1999 AND 1998
                                     
                           (UNAUDITED) - NOTE A



                                               NINE MONTHS ENDED
                                                 JANUARY 31
                                           1999                1998
                                   
Cash Flow from Operations :

     Net Income                        $ 1,050,843       $  988,917
     Adjustments (net)                     117,067           73,009 
                                        __________         _________
     Net Cash from operations          $ 1,167,910       $1,061,926



Cash Flow from Investing activities        220,991       (  343,639)

Cash Flow from Financing activities     (1,244,923)      (1,245,695)
                                         __________       _________


Increase/(Decrease) in Cash Flow       $   143,978      $(  527,408)


Cash and Cash equivalents - beginning    1,637,807        2,282,403

                                        __________        _________
Cash and Cash equivalents - ending      $1,781,785       $1,754,995















                                    -3-

     
                            SWISS CHALET, INC.
            NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)



NOTE A  - BASIS OF PRESENTATION

     The accompanying unaudited Condensed Financial Statements have been
prepared in accordance with the instructions to Form 10-QSB and, therefore,
do not include all information and footnotes necessary for a fair
presentation of financial position in conformity with generally accepted
accounting principles. The unaudited Condensed Financial Statements contain
all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of Management, necessary to a fair statement of the
results for the period presented. The interim results are not necessarily
indicative of the results which may be expected for the full year. The
subject Condensed Financial Statements should be read in conjunction with
the summary of significant accounting policies set forth in Note 1 to the
Financial Statements included in the Company's Annual Report to
Shareholders for the year ended April 30, 1998.

     Depreciation of the original building is spread over a 50 year life
while equipment is depreciated over useful lives ranging from 5 to 10 years
depending on its type.

 
NOTE B  - PROVISIONS FOR INCOME TAX


     Local Income Tax is not provided for until the year end. however, if
such provision had been made it would have amounted to less than $25,000.00
for the three month period.

















                                    -4-




PART I


                            SWISS CHALET, INC.



ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS



     The following is Management's discussion and analysis of certain
significant factors which have affected the Company's earnings during the
periods included in the accompanying Condensed Statements of Income.

     A summary of the period to period changes in the principal items
included in the Condensed Statement of Income is shown below:





                             NINE MONTHS ENDED    THREE MONTHS ENDED
                                 JANUARY 31          JANUARY 31

                                 INCREASE            INCREASE
                                (DECREASE)   %      (DECREASE)   %
                              _______________________________________

Net Sales & Other Income      $  92,517      2.5    $ 277,578   20.3 

Cost of Sales                   ( 5,095)    (8.0)       1,644    7.6 

Operation Expenses and           35,687      1.3       56,114    3.2
Other Deductions

Interest                            -        N/A          -     N/A

Net Income                       61,926      6.3      219,820   54.7 











                                    -5-



                            SWISS CHALET, INC.

     The comparative table of occupancies and average rates is shown below
for the nine month period.

                       Occupancy                      Average Rate
                  1998/99        1997/98          1998/99     1997/98  
     
     May            62%            64%            $88.09    $89.00
     June           57%            72%             91.13     90.16
     July           57%            71%             87.42     85.86
     Aug            67%            79%             85.38     85.95
     Sept           53%            64%             85.61     88.70
     Oct            97%            75%             88.10     87.90
     Nov            94%            76%             96.01     87.16
     Dec            82%            74%            105.33     92.13
     Jan            82%            76%            115.61    108.34

Average 9 months    72%            72%            $94.62    $90.67

     
     As reported in the previous filing the Company had experienced a
dramatic turnaround following the arrival of Hurricane Georges on September
21,1998. The brutally competitive market that had existed prior to the
hurricane was converted into a very favorable operating climate as
several of our competitors closed due to damage or economic factors. In
addition the lobby renovation is almost complete making the hotel more
attractive and easier to sell.  As a result the hotel had a record net
income for the third quarter in spite of having to reserve for a potential 
bad debt of almost $40,000. Payroll and other expense remained well
controlled and the prognosis for the fourth quarter appears excellent.

     The Company's Accounting, Property Management System, Electronic Keys
and stock registration systems are Y2K compliant and we anticipate
replacing our telephone system during this year. Mechanical equipment
does not, in the opinion of management, represent a significant exposure.
As mentioned in earlier reports the Company has eliminated all long term
debt and interest expense due to the strong cash flows generated from
operations.

     The Company's primary source of working capital is from funds provided
from operations. Working capital increased over the nine month period by
$205,091 and all long term debt has been repaid. The Company believes that
it's excess cash from operations will be sufficient to finance it's long
and short term capital needs including the payment of accrued dividends.

PART II

6.   EXHIBITS AND REPORTS ON FORM 8K

     NONE


                                    -6-



                            SWISS CHALET, INC.

                                SIGNATURES   



     Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its be half by
the undersigned thereunto duly authorized.




                                   SWISS CHALET, INC.







DATE :02/24/99                     BY:__________________________
                                   PETER D. SOMECH
                                   Treasurer, Director and
                                   Principal Financial Officer



















                                    -7-