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: October 31, 1997.          
                                   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 November 10,1997
: 1,401,162







                       PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL INFORMATION



                            SWISS CHALET, INC.
                      CONDENSED STATEMENTS OF INCOME
              FOR THE SIX MONTHS ENDED OCTOBER 1997 AND 1996     

                           (UNAUDITED) - NOTE A


                       SIX MONTHS ENDED         THREE MONTHS ENDED
                          OCTOBER 31                 OCTOBER 31
                     1997         1996         1997         1996
                    _____________________    _______________________

Net Sales and       $2,404,041    $2,491,703  $1,229,640   $1,342,056
Other Income


COST AND EXPENSES

Cost of Sales           41,861        43,653      22,669      21,140

Operating Expenses   1,775,131     1,752,756     908,457     890,768       
and other deductions     

Interest Expense          -             -            -           -     

NET INCOME          $  587,049       695,294     298,514     430,148



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

NET INCOME PER SHARE          0.42c         0.49c       0.21c        0.31c 

                                                                           







                                    -1- 


               
                            SWISS CHALET, INC.
                          CONDENSED BALANCE SHEET
                             OCTOBER 31, 1997
                           (UNAUDITED) - NOTE A

                                                  OCTOBER 31
                                                    1997
                                                  __________
ASSETS


CURRENT ASSETS
     Cash and Cash equivalents                    $1,956,563     
     Securities held to maturity                     819,734     
     Accounts Receivable, Net                        337,723     
     Inventories                                      34,615
     Other Current Assets                             50,876
                                                  __________
TOTAL CURRENT ASSETS                              $3,199,511
                 
INVESTMENT IN CONDOMINIUM AND LAND                 
PROPERTY, PLANT AND EQUIPMENT, Net                 2,977,503

OTHER ASSETS                                          70,865
                                                  __________
TOTAL ASSETS                                      $6,247,879
                                                  __________

LIABILITIES AND SHAREHOLDER'S EQUITY


CURRENT LIABILITIES

     Accounts Payable and Accrued Expenses        $  476,998
     Dividends Payable                                96,390 
                                                  __________
TOTAL CURRENT LIABILITIES                         $  573,388

Deferred Compensation Liability                       61,800   

SHAREHOLDER'S EQUITY,

     Common Stock at stated value                 $  700,581
     Additional paid in capital                       24,069
     Retained Earnings                             4,888,041
                                                  __________
                                                  $5,612,691
                                                  __________
TOTAL LIABILITIES                                 $6,247,879
                                                  __________

                                    -2-


                            SWISS CHALET, INC.

               CONDENSED STATEMENTS OF CHANGES IN CASH FLOWS
                                     
            FOR THE SIX MONTHS ENDED OCTOBER 31, 1997 AND 1996
                                     
                           (UNAUDITED) - NOTE A



                                                 SIX MONTHS ENDED
                                                   OCTOBER 31
                                             1997             1996
                                   
Cash Flow from Operations :

     Net Income                         $  587,049       $  695,294
     Adjustments (net)                     168,839        (  98,175)
                                        __________         _________
     Net Cash from operations           $  755,888       $  597,119



Cash Flow from Investing activities      ( 112,786)       ( 661,418)

Cash Flow from Financing activities      ( 968,942)       ( 900,653)
                                         __________       _________


Increase/(Decrease) in Cash Flow        $( 325,840)      $( 964,952)


Cash and Cash equivalents - beginning    2,282,403        2,740,386

                                        __________        _________
Cash and Cash equivalents - ending      $1,956,563       $1,775,434















                                    -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, 1997.

     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.

















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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:





                              SIX MONTHS ENDED    THREE MONTHS ENDED
                                 OCTOBER 31          OCTOBER 31

                                 INCREASE            INCREASE
                                (DECREASE)   %      (DECREASE)   %
                              _______________________________________

Net Sales & Other Income      $( 87,662)    (3.5)   $(112,416) ( 8.4)

Cost of Sales                  (  1,792)    (4.1)       1,529    7.2 

Operation Expenses and           22,375      1.3       17,689    2.0
Other Deductions

Interest                            -        N/A          -     N/A

Net Income                     (108,245)   (15.5)     131,634  (30.6)











                                    -5-



                            SWISS CHALET, INC.



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


                       Occupancy                       Average Rate
                    1997           1996          1997          1996  
     
     May            64%            66%            $89.00    $86.96
     June           72%            70%             90.16     87.16
     July           71%            70%             85.86     85.35
     Aug            79%            79%             85.95     85.07
     Sept           64%            82%             88.70     87.65
     Oct            75%            87%             87.90     87.10
      

Average 6 months    71%            76%            $87.85    $86.56

     
     As reported in previous filings the Company had benefited, in the
prior year, from an unusually high occupancy during September and October
due to the hurricane relief efforts conducted by the Red Cross using the
hotel as their base. As this situation did not recur in the current year
the Company suffered considerably lower income in those months. Payroll
and other expense remained well controlled during both of the first two
quarters. The Company has reached an agreement (awaiting final signature)
with it's unionized employees covering three years from December 1,1997
during which period wage increases will be less than 3% per annum. This
should allow the Company to maintain competitive rates with new hotels as
they open during the year. 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 six month period by
$610,676 and, as mentioned above, 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 :11/25/97                     BY:__________________________
                                   PETER D. SOMECH
                                   Treasurer, Director and
                                   Principal Financial Officer























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