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: July 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 July 31,1997: 1,401,162







                       PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL INFORMATION



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

                           (UNAUDITED) - NOTE A


                                   THREE MONTHS ENDED       
                                        JULY 31             
                                   1997      1996           
                                   ________________         

Net Sales and                 $1,174,401     $1,149,647        
Other Income


COST AND EXPENSES

Cost of Sales                     19,192         22,513         
     
Operating Expenses               866,674        861,988               
and other deductions     

   
                              __________     ___________
NET INCOME                    $  288,535             265,146        




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

NET INCOME PER SHARE                    0.21c            0.19c           

                                                                           










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

                                                  JULY 31
                                                    1997
                                                  __________
ASSETS


CURRENT ASSETS
     Cash and Cash equivalents                    $1,755,501     
     Securities held to maturity                   1,004,642     
      Accounts Receivable, Net                       243,964     
     Inventories                                      37,526
     Other Current Assets                             30,716 
                                                  __________
TOTAL CURRENT ASSETS                              $3,072,349

INVESTMENT IN CONDOMINIUM AND LAND                 
PROPERTY, PLANT AND EQUIPMENT, Net                 2,968,176

OTHER ASSETS                                          67,116
                                                  __________
TOTAL ASSETS                                      $6,107,641
                                                  __________

LIABILITIES AND SHAREHOLDER'S EQUITY


CURRENT LIABILITIES

     Accounts Payable and Accrued Expenses        $  638,719
     Dividends Payable                                96,545
                                                  __________
TOTAL CURRENT LIABILITIES                         $  735,264

Deferred Compensation Liability                       58,200          


SHAREHOLDER'S EQUITY

     Common Stock at stated value                 $  700,581
     Additional paid in capital                       24,069
     Retained Earnings                             4,589,527
                                                  __________
                                                  $5,314,177
                                                  __________
TOTAL LIABILITIES                                 $6,107,641
                                                  __________

                                     
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                            SWISS CHALET, INC.

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



                                                THREE MONTHS ENDED
                                                      JULY 31
                                             1997              1996
                                   
Cash Flow from Operations :,

     Net Income                         $  288,535     $  265,146
     Adjustments (net)                     188,453*           556
                                        __________     __________     
     Net Cash from operations           $  476,988     $  265,702     



Cash Flow from Investing activities      (  35,102)    $(  50,145)

Cash Flow from Financing activities      ( 968,788)     ( 899,183)
                                         __________     _________


Increase/(Decrease) in Cash Flow        $( 526,902)    $( 683,626)


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

                                        __________     __________     
Cash and Cash equivalents - ending      $1,755,501*    $2,056,760




*Includes approx. $220,000 credited to the bank account in error by         
 Company's securities broker. This was corrected in August.











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                            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.


















                                    -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:





                                   THREE MONTHS ENDED
                                         JULY 31

                                    INCREASE
                                   (DECREASE)    %
                                   __________  _____

Net Sales & Other Income           $  24,754     2.2  

Cost of Sales                       (  3,321)  (14.8) 

Operation Expenses and                 4,686     0.5  
Other Deductions


Net Income                            23,389     8.8       












                                    -5-



                            SWISS CHALET, INC.



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


                       Occupancy                  Average Rate
                    1996      1995           1996           1995
     
     May            64%       66%            $89.00         $86.96
     June           72%       70%             90.16          87.16
     July           71%       70%             85.86          85.35

     Average 3 mon. 69%       68%            $88.30         $86.48

     
     The Company continues to pursue its policy of competitive rates both
for groups and special weekends packages during the slower summer season.
Despite increased competition (with more hotel rooms due to open this year)
the Company has been able to retain the progress in income and occupancy
made last fiscal year. Expense and payroll have been well controlled. A  
decline in revenues and profitability is expected in the upcoming quarter
when compared to the prior year as the Company was used as a center for
hurricane relief efforts during September and October 1996 which created 
an unusual degree of profitability in what are,traditionally, slow months.  
  
     The Company's primary source of working capital is from funds provided
from operations. Working capital increased over the three month period by
$263,439 and, as mentioned in previous reports, 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 










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                            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 : Aug 27, 1997                BY:__________________________
                                   PETER D. SOMECH
                                   Treasurer, Director and
                                   Principal Financial Officer


























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