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, 1998.          
                                   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 09,1998
: 1,401,162







                       PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL INFORMATION



                            SWISS CHALET, INC.
                      CONDENSED STATEMENTS OF INCOME
              FOR THE SIX MONTHS ENDED OCTOBER 1998 AND 1997     

                           (UNAUDITED) - NOTE A


                       SIX MONTHS ENDED         THREE MONTHS ENDED
                          OCTOBER 31                 OCTOBER 31
                     1998         1997         1998         1997
                    _____________________    _______________________

Net Sales and       $2,218,980    $2,404,041  $1,199,796   $1,229,640
Other Income


COST AND EXPENSES

Cost of Sales           35,122        41,861      17,778      22,669

Operating Expenses   1,754,703     1,775,131     867,343     908,457       
and other deductions     

Interest Expense          -             -            -           -     

NET INCOME          $  429,155       587,049     314,675     298,514



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

NET INCOME PER SHARE     0.31c         0.42c       0.22c        0.21c 

                                                                           







                                    -1- 


               
                            SWISS CHALET, INC.
                          CONDENSED BALANCE SHEET
                             OCTOBER 31, 1998
                           (UNAUDITED) - NOTE A

                                                  OCTOBER 31
                                                    1998
                                                  __________
ASSETS


CURRENT ASSETS
     Cash and Cash equivalents                    $1,525,662     
     Securities held to maturity                     869,906     
     Accounts Receivable, Net                        547,307     
     Inventories                                      33,169
     Other Current Assets                             48,894
                                                  __________
TOTAL CURRENT ASSETS                              $3,024,938
                 
INVESTMENT IN CONDOMINIUM AND LAND                 
PROPERTY, PLANT AND EQUIPMENT, Net                 3,392,839

OTHER ASSETS                                         109,352
                                                  __________
TOTAL ASSETS                                      $6,527,129
                                                  __________

LIABILITIES AND SHAREHOLDER'S EQUITY


CURRENT LIABILITIES

     Accounts Payable and Accrued Expenses        $  467,528
     Dividends Payable                               112,354 
                                                  __________
TOTAL CURRENT LIABILITIES                         $  579,882

Deferred Compensation Liability                      103,100   

SHAREHOLDER'S EQUITY,

     Common Stock at stated value                 $  700,581
     Additional paid in capital                       24,069
     Retained Earnings                             5,119,497
                                                  __________
                                                  $5,844,147
                                                  __________
TOTAL LIABILITIES                                 $6,527,129
                                                  __________

                                    -2-


                            SWISS CHALET, INC.

               CONDENSED STATEMENTS OF CHANGES IN CASH FLOWS
                                     
            FOR THE SIX MONTHS ENDED OCTOBER 31, 1998 AND 1997
                                     
                           (UNAUDITED) - NOTE A



                                                 SIX MONTHS ENDED
                                                   OCTOBER 31
                                             1998             1997
                                   
Cash Flow from Operations :

     Net Income                         $  429,155       $  587,049
     Adjustments (net)                   ( 201,928)         168,839        

                                        __________         _________
     Net Cash from operations           $  227,227       $  755,888



Cash Flow from Investing activities        628,957        ( 112,786)

Cash Flow from Financing activities      ( 968,329)       ( 968,942)
                                         __________       _________


Increase/(Decrease) in Cash Flow        $( 112,145)      $( 325,840)


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

                                        __________        _________
Cash and Cash equivalents - ending      $1,525,662       $1,956,563















                                    -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:





                              SIX MONTHS ENDED    THREE MONTHS ENDED
                                 OCTOBER 31          OCTOBER 31

                                 INCREASE            INCREASE
                                (DECREASE)   %      (DECREASE)   %
                              _______________________________________

Net Sales & Other Income      $(185,061)    (7.6)   $( 29,844) ( 2.4)

Cost of Sales                  (  6,739)   (16.1)    (  4,891) (21.6)

Operation Expenses and         ( 20,428)   ( 1.2)    ( 41,114) ( 4.5)
Other Deductions

Interest                            -        N/A          -     N/A

Net Income                     (157,894)   (26.9)      16,161    5.4 











                                    -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            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

Average 6 months    66%            71%            $87.63    $87.85

            It has been an unusual year for the Company in that the first
five months reflected lower occupancies and drastically reduced profits.
This was a direct consequence of a brutally competitive market due to the
increased number of hotel rooms available. The whole picture changed with
Hurricane Georges which arrived on September 21 bringing with it an influx
of relief personnel such as Red Cross and FEMA to our hotel which had been
fortunate enough to have suffered very little in the way of operational
damages. In addition several of our direct competitors closed for repairs
and, in two cases, are unlikely to be open for the winter season. As a
result the October figures helped to close the gap and, as the occupancy
and average rates for November are unusually strong, we are very optimistic
that the winter season will be a good one. Payroll and Other expenses
remain well controlled particularly in the second quarter. 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     
$864 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.

      The Company's Accounting, Property Management System, Electronic
Keys, and stock registration systems are Y2K compliant and we anticipate
replacing our telephone equipment in the ensuing year. We are on-line with
the Best Western reservations system which is, to our understanding, fully
compliant. Mechanical equipment is still being evaluated but we do not
consider our exposure to be material.

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 :11/26/98                     BY:__________________________
                                   PETER D. SOMECH
                                   Treasurer, Director and
                                   Principal Financial Officer























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