UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                    FORM 10-Q

(Mark One)
/ X /               QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                      OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000

                                       OR

/    /           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
                         OF THE SECURITIES EXCHANGE ACT OF 1934

             For the transition period from __________ to __________

                         Commission File Number: 0-28108

                        Suburban Lodges of America, Inc.
                        --------------------------------
                          (Exact Name of registrant as
                           specified in its charter)

           Georgia                                            58-1781184
   -----------------------                                -------------------
   (State of Incorporation)                                  (IRS Employer
                                                          Identification No.)

                              300 Galleria Parkway
                                   Suite 1200
                             Atlanta, Georgia 30339
            -----------------------------------------------------------
           (Address of principal executive office, including zip code)


                                  770-799-5000
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


         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 during the preceding 12 months (or for such shorter  period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
YES / X /  NO /   /


         Number of shares of Common  Stock,  $.01 par value,  outstanding  as of
August 4, 2000:

                                   12,513,070


<PAGE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                                Suburban Lodges of America, Inc.
                                   Consolidated Balance Sheets
                                         (in thousands)
<TABLE>
<CAPTION>
                                                                  (Unaudited)
                                                                     June 30,      December 31,
                                                                       2000           1999
                                                                    --------       ------------
<S>                                                                 <C>             <C>
 ASSETS:
 Current assets:
      Cash and cash equivalents                                     $  5,015        $  9,862
       Accounts receivable, net of reserves of
           $375 (2000) and $191 (1999)                                 1,674           1,852
      Hotel inventory and supplies                                     2,537           2,290
      Prepaid and refundable income taxes                                 29           1,163
      Deferred income taxes                                              461             448
      Prepaid expenses and other current assets                        1,989           1,511
                                                                    --------        --------
            Total current assets                                      11,705          17,126

 Property and equipment, net of accumulated depreciation and
           amortization of $23,232 (2000) and $18,600 (1999)         295,383         291,269

 Notes receivable HotelTools, Inc.                                     3,570             344
 Other notes receivable                                                4,972           4,992
 Acquired intangible assets                                            3,635           3,617
 Deferred loan costs                                                   2,161           1,721
 Other assets                                                          1,757           2,013
                                                                    --------        --------
 TOTAL ASSETS                                                       $323,183        $321,082
                                                                    ========        ========


 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Current liabilities:
      Current portion of long-term debt                             $  1,311        $  1,228
      Construction accounts payable                                      729           1,752
      Trade accounts payable                                           1,264           3,207
      Accrued property taxes                                           1,121           1,113
      Accrued wages and benefits                                       1,495             507
      Other accrued liabilities                                        1,438             615
      Other current liabilities                                          731             591
                                                                    --------        --------
           Total current liabilities                                   8,089           9,013

 Long-term debt, excluding current portion                           104,032          97,891
 Deferred income taxes                                                 2,290           2,333
 Other liabilities                                                       163              84
                                                                    --------        --------
           Total liabilities                                         114,574         109,321
                                                                    --------        --------

 Shareholders' equity:
      Common stock                                                       157             157
      Additional paid-in capital                                     202,280         202,250
      Retained earnings                                               22,006          19,345
                                                                    --------        --------
                                                                     224,443         221,752
      Less treasury stock, at cost                                    15,834           9,991
                                                                    --------        --------
           Shareholders' equity, net                                 208,609         211,761
                                                                    --------        --------

 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY:                        $323,183        $321,082
                                                                    ========        ========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                     Page 2
<PAGE>

                                           Suburban Lodges of America, Inc
                                        Consolidated Statements of Operations
                                      (in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                             (Unaudited)                      (Unaudited)
                                                         Three Months Ended                Six  Months Ended
                                                  June 30, 2000    June 30, 1999    June 30, 2000    June 30, 1999
                                                  -------------    -------------    -------------    --------------
<S>                                                  <C>              <C>              <C>              <C>
 REVENUE:
      Hotel revenue                                  $ 18,072         $ 15,904         $ 34,031         $ 29,237
      Franchise and other revenue                       1,202              906            2,338            1,512
                                                     --------         --------         --------         --------
         Total revenue                                 19,274           16,810           36,369           30,749
                                                     --------         --------         --------         --------


 OPERATING COSTS AND EXPENSES:
      Hotel operating expenses                          9,238            7,976           18,397           15,301
      Corporate operating expenses                      2,732            1,733            5,591            3,400
      Depreciation and amortization                     2,405            1,992            4,803            3,801
                                                     --------         --------         --------         --------
                                                       14,375           11,701           28,791           22,502
      Reserve for loss on property sale                   545                               545
      Gains realized on property sales                    (68)                              (68)          (1,145)
                                                     --------         --------         --------         --------
           Operating costs and expenses - net          14,852           11,701           29,268           21,357
                                                     --------         --------         --------         --------

 INCOME FROM OPERATIONS                                 4,422            5,109            7,101            9,392

 OTHER INCOME (EXPENSE):
      Interest income                                     189              337              434              642
      Interest expense                                 (2,088)          (1,493)          (4,134)          (2,758)
      Proceeds from legal settlement                      842                               842
      Other                                                 5              184               15              184
                                                     --------         --------         --------         --------
         Income before income taxes                     3,370            4,137            4,258            7,460
 Provision for income taxes                             1,264            1,572            1,597            2,798
                                                     --------         --------         --------         --------

 NET INCOME                                          $  2,106         $  2,565         $  2,661         $  4,662
                                                     ========         ========         ========         ========

EARNINGS PER COMMON SHARE:
    Basic and diluted                                $   0.16         $   0.17         $   0.20         $   0.30
                                                     ========         ========         ========         ========


WEIGHTED AVERAGE NUMBER OF
    COMMON SHARES OUTSTANDING:
    Basic and diluted                                  13,335           15,398           13,603           15,414
                                                     ========         ========         ========         ========


                            See accompanying notes to consolidated financial statements.
</TABLE>
                                                       Page 3
<PAGE>
                                          Suburban Lodges of America, Inc.
                                        Consolidated Statements of Cash Flows
                                                   (in thousands)
<TABLE>
<CAPTION>
                                                                                    (Unaudited)
                                                                                 Six Months Ended
                                                                         June 30, 2000     June 30, 1999
                                                                         -------------     -------------
<S>                                                                         <C>                <C>
Operating activities:
Net income                                                                  $  2,661           $  4,662
Adjustments to reconcile net income to
  net cash provided by operating activities:
  Depreciation and amortization                                                4,803              3,801
  Deferred income taxes                                                            1                587
  Stock compensation                                                              30                 19
  Gains realized on property sales                                               (68)            (1,145)
  Reserve for loss on property sale                                              545
  Changes in operating assets and liabilities - net of the effects
     of acquisitions:
     Accounts receivable                                                         225               (148)
     Other current assets                                                        471              2,146
     Other assets                                                             (3,531)              (307)
     Trade accounts payable                                                   (2,004)            (1,958)
     Income taxes payable                                                                           162
     Other current liabilities                                                 1,937              1,494
     Other liabilities                                                            79                 (3)
                                                                            --------           --------
          Net cash provided by operating activities                            5,149              9,310
                                                                            --------           --------

Investing activities:
     Additions to property and equipment                                      (5,903)           (20,110)
     Proceeds from sale of hotel property                                        230              4,405
     Acquisitions, net of cash acquired                                         (641)            (1,448)
     Decrease in construction accounts payable                                (1,023)            (4,040)
                                                                            --------           --------
          Net cash used by investing activities                               (7,337)           (21,193)
                                                                            --------           --------

Financing activities:
     Proceeds from issuance of long-term debt                                  5,904             23,950
     Principal payments on long-term debt                                     (3,280)            (7,077)
     Amounts borrowed under line of credit                                     6,000
     Repayment of line of credit borrowings                                   (5,000)
     Purchase of treasury stock                                               (5,843)            (1,980)
     Net increase in deferred loan costs                                        (440)               (92)
                                                                            --------           --------
          Net cash provided by (used by) financing activities                 (2,659)            14,801
                                                                            --------           --------

Net increase (decrease) in cash and cash equivalents                          (4,847)             2,918

Cash and cash equivalents at beginning of period                               9,862             19,178
                                                                            --------           --------

Cash and cash equivalents at end of period                                  $  5,015           $ 22,096
                                                                            ========           ========

Supplemental information:

Interest paid net of interest capitalized                                   $  4,219           $  2,684
                                                                            ========           ========
Income taxes paid (net refund received)                                     $    472           $   (564)
                                                                            ========           ========

                            See accompanying notes to consolidated financial statements.
</TABLE>
                                                       Page 4
<PAGE>
                        Suburban Lodges of America, Inc.
                   Notes to Consolidated Financial Statements
                                   (Unaudited)



1.     BASIS OF PRESENTATION

         The accompanying  unaudited consolidated financial statements have been
         prepared  pursuant to the rules and  regulations  of the Securities and
         Exchange  Commission for reporting on Form 10-Q.  Accordingly,  certain
         information  and footnotes  required by generally  accepted  accounting
         principles for complete financial  statements have been omitted. In the
         opinion of management,  all  adjustments  that are necessary for a fair
         presentation of financial  position and results of operations have been
         made. These interim financial  statements should be read in conjunction
         with the consolidated historical financial statements and notes thereto
         presented  in the  Company's  Annual  Report  on Form 10-K for the year
         ended December 31, 1999.

         All  significant  intercompany  balances  and  transactions  have  been
         eliminated.


2.       LONG-TERM DEBT

         On March 28, 2000,  the Company  completed a $2,660,000  mortgage  loan
         agreement with Empire Financial Services, Inc. with an initial interest
         rate of  9.25%.  The  interest  rate is  adjustable  at the end of each
         twelve-month  period  to rates  based on  prime  plus 50 basis  points.
         During the  initial  twelve-month  period,  the loan  requires  monthly
         payments  of  principal  and  interest  totaling  $24,362  based  on  a
         principal  amortization  period of 20 years  with a final  maturity  of
         March 1, 2007. One Company-owned hotel is pledged as collateral on this
         loan.

         On February 18, 2000,  the Company  executed a bank line of credit with
         SouthTrust  Bank.  The  line of  credit  provides  a  revolving  credit
         facility for amounts up to $15 million.  Borrowings  under the facility
         will bear interest,  at the Company's  option,  at (i) the bank's prime
         rate or (ii) the Euro-Rate plus 275 basis points.  Borrowings under the
         credit facility are secured by a pool of nine hotels. At June 30, 2000,
         there  were  borrowings  of  $1,000,000  outstanding  under the line of
         credit.

         On June 7, 1999,  the Company  completed a  $13,700,000  mortgage  loan
         arrangement with Finova Realty Capital  Corporation at a fixed interest
         rate of 8.8%.  The loan  requires  monthly  payments of  principal  and
         interest   totaling   approximately   $113,100   based  on  a   25-year
         amortization schedule with a final maturity of July 1, 2009. A total of
         five Company-owned hotels are pledged as collateral on this loan.

         On March 31,  1999,  the  Company  completed  a  $10,250,000  financing
         arrangement  with  Empire  Financial   Services,   Inc.  The  financing
         consisted  of three  mortgage  loans with an initial  weighted  average
         interest rate of 8.38%. The interest rates are adjustable at the end of
         each  three-year  period to rates based on prime plus an average margin
         of 62.5 basis points. The loan repayments aggregating $88,163 per month
         are based on a principal  amortization  period of 20 years with a final
         maturity  of March 1,  2005 for one of the  loans and March 1, 2008 for
         the  other  two  loans.  Three  Company-owned  hotels  are  pledged  as
         collateral on these loans.

                                     Page 5
<PAGE>

3.  ACQUISITIONS

         On January 1, 2000, the Company  acquired the remaining 50% interest in
         a Suburban  Lodge hotel in Atlanta,  Georgia  (the "2000  Acquisition")
         owned  by a joint  venture  in  which  the  Company  held a 50%  equity
         position. The total purchase price of $3,260,000, including transaction
         related expenses, consisted of cash of $660,000 and the assumption of a
         $2,600,000 mortgage note. The note was repaid on February 18, 2000.

         On June 1,  1999,  the  Company,  through  a  wholly-owned  subsidiary,
         GuestHouse   International  Franchise  Systems,  Inc.   ("GuestHouse"),
         completed the acquisition of assets from GuestHouse  International  LLC
         (the "1999  Acquisition").  GuestHouse  is a  franchisor  of  mid-scale
         lodging  facilities  under the  names  GuestHouse  International  Inns,
         Hotels and Suites.  The total purchase  price of $3,525,000,  including
         transaction  related  expenses,  consisted  of cash of  $1,481,000  and
         300,000  shares of the  Company's  common  stock with a market value of
         $2,044,000.

         The acquisitions described in the preceding two paragraphs were treated
         as purchases;  accordingly,  operations  of the acquired  companies are
         included  in  the  unaudited  consolidated   statements  of  operations
         commencing on the dates of  acquisition.  The  Company's  allocation of
         purchase  price to  assets  acquired  and  liabilities  assumed  was as
         follows (in thousands):

                                                     The 2000        The 1999
                                                    Acquistion     Acquisition

               Property and equipment               $ 3,550
               Acquired intangible assets               189           $ 3,633
               Other assets                             185                90
                                                    -------           -------
               Total assets                           3,924             3,723
               Notes payable                         (2,600)
               Other liabilities                        (83)             (198)
                                                    -------           -------
               Net assets acquired                    1,241             3,525
               Less:
               Prior equity investment                 (581)
               Cash received                            (19)
                                                    -------           -------
               Purchase price, net of cash          $   641           $ 3,525
                                                    =======           =======

4.     EARNINGS PER COMMON SHARE

         Earnings per common share were computed  based on the weighted  average
         number of common shares  outstanding.  Stock options  outstanding under
         the Company's various stock option plans did not have a dilutive effect
         in any of the periods presented.

5.     CONTINGENCIES

         The Company is a defendant  in  litigation  in the  ordinary  course of
         business. In the opinion of management, such litigation will not have a
         material  adverse  effect  on  the  financial   position,   results  of
         operations or cash flows of the Company.


                                     Page 6
<PAGE>

6.     SEGMENT AND RELATED INFORMATION

         The  Company  operates in three  reportable  business  segments:  hotel
         operations,  franchising operations and corporate and support services.
         The Company  evaluates the performance of its operating  segments based
         on net  operating  income,  which is  defined as income  before  income
         taxes,  nonrecurring items, interest income, interest expense, gains on
         sales of property and other nonoperating income.

         Summarized  financial  information  concerning the Company's reportable
         segments is shown in the following tables (in thousands):
<TABLE>
<CAPTION>

                                              Hotel       Franchising      Corporate      Total
                                            Operations     Operations     and Support
                                                                           Services
                                            ------------------------------------------------------
     <S>                                     <C>            <C>            <C>             <C>
     Quarter ended June 30, 2000
     Revenues from external customers        $18,072        $   904        $   298         $19,274
     Intersegment revenues                                      725            903           1,628
     Depreciation and amortization             2,154             85            166           2,405
     Net operating income (loss)               5,051              4           (156)          4,899

     Quarter ended June 30, 1999
     Revenues from external customers        $15,904        $   549        $   357         $16,810
     Intersegment revenues                                      634            794           1,428
     Depreciation and amortization             1,821             41            130           1,992
     Net operating income (loss)               4,679            622           (145)          5,156

     Six months ended June 30, 2000
     Revenues from external customers        $34,031        $ 1,690        $   648         $36,369
     Intersegment revenues                                    1,360          1,701           3,061
     Depreciation and amortization             4,301            170            332           4,803
     Net operating income (loss)               8,271              3           (696)          7,578

     Six months ended June 30, 1999
     Revenues from external customers        $29,237        $   932        $   580         $30,749
     Intersegment revenues                                    1,170          1,462           2,632
     Depreciation and amortization             3,522             44            235           3,801
     Net operating income (loss)               7,783          1,065           (463)          8,385

</TABLE>
                                     Page 7
<PAGE>

         The  following  table  provides a  reconciliation  of total segment net
         operating  income to the Company's  reported income before income taxes
         (in thousands):

<TABLE>
<CAPTION>
                                                Quarter ended  June 30         Six months ended June 30
                                               ------------------------        ------------------------
                                                 2000            1999             2000          1999
                                                 ----            ----             ----          ----
<S>                                            <C>             <C>             <C>             <C>
     Total segment net operating income        $ 4,899         $ 5,156         $ 7,578         $ 8,385
     Interest income                               189             337             434             642
     Gains realized on property sales               68                              68           1,145
     Proceeds from legal settlement                842                             842
     Other nonoperating income                       5             184              15             184
     Interest expense                           (2,088)         (1,493)         (4,134)         (2,758)
     Reserve for loss on property sale            (545)                           (545)
     Site acquisition cancellation costs                           (47)                           (138)
                                               -------         -------         -------         -------
     Income before income taxes                $ 3,370         $ 4,137         $ 4,258         $ 7,460
                                               =======         =======         =======         =======
</TABLE>

         All of the  Company's  revenues  are  derived in the  United  States of
         America.  No single external  customer accounts for ten percent or more
         of the Company's total revenue.


7.     RELATED PARTY TRANSACTIONS

         In the fall of 1999, the Company  licensed to HotelTools,  Inc. the use
         of  its  proprietary  hotel  management  and  reservation  systems  and
         Hoteltools,  Inc.  assumed the costs of the continued  maintenance  and
         development  of these  systems.  As of June 30,  2000,  the Company had
         notes receivable of $3,570,000 from HotelTools,  Inc. for loans made to
         HotelTools  to fund their  operations.  The loans are payable on demand
         and bear interest at a rate of 7% per annum.  In exchange for the loans
         the Company received from HotelTools, Inc., a stock purchase warrant to
         purchase up to 20 million shares of HotelTools,  Inc. common stock at a
         nominal  price.  David  E.  Krischer,  the  Company's  Chief  Executive
         Officer, is a member of the Board of Directors of HotelTools, Inc.

         During 1998,  the Company  entered into a venture to develop a Suburban
         Lodge hotel in Atlanta,  Georgia,  investing  $200,000 for a 25% equity
         position.  A  non-employee  director of the Company  owned  another 25%
         equity position in this venture. In December 1998, the Company acquired
         an option to purchase the director's interest for a total consideration
         of $300,000.  On August 1, 1999,  the Company  exercised  its option to
         purchase the director's interest. The hotel owned by the venture opened
         in May 1999. In January 2000,  the Company  purchased the remaining 50%
         interest  in this hotel from the  unaffiliated  owners.  See Note 3 for
         more information regarding this purchase.

8.     RECLASSIFICATIONS

         Certain  prior year  amounts have been  reclassified  to conform to the
current year presentation.


                                     Page 8
<PAGE>

PART I

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


COMPARISON OF THE QUARTER ENDED JUNE 30, 2000 TO THE QUARTER ENDED JUNE 30, 1999

Hotel revenues increased by $2.2 million,  or 14%, from $15.9 million in 1999 to
$18.1 million in 2000.  The largest  portion ($1.3  million) of the increase was
attributed to the six hotels opened or acquired by the Company  between April 1,
1999 and March 31, 2000 and operated  for the full quarter  ended June 30, 2000.
The Company opened one hotel during the quarter ended June 30, 2000.  This hotel
accounted for $0.1 million of the increase. Fifty-seven hotels that operated for
the full  quarter  in both  1999  and 2000  accounted  for $0.7  million  of the
increase in hotel revenues.  These  fifty-seven  hotels increased their combined
Average  Weekly  Rate  (AWR) by 2%,  from  $190.33  in 1999 to  $194.68 in 2000.
Occupancies at these hotels increased from 81.4% in 1999 to 82.2% in 2000, while
Weekly Revenue per Available Room (RevPAR) increased 4%, from $154.43 in 1999 to
$160.22 in 2000. For all Company-owned  hotels, AWR increased to $196.62 in 2000
from $191.42 in 1999,  occupancy increased to 81.7% in 2000 compared to 80.5% in
1999, and weekly RevPAR increased to $160.64 in 2000 from $153.36 in 1999.

Franchise and other revenues increased by $0.3 million,  or 33%, to $1.2 million
in 2000. The largest portion ($0.3 million) of the increase was  attributable to
incremental franchise fees and royalties for the GuestHouse International brand,
which was acquired on June 1, 1999.  Franchise fees for the Suburban Lodge hotel
brand  increased  $0.1 million due to the larger number of franchised  locations
open during the second quarter of 2000. At June 30, 2000, 52 franchised Suburban
Lodge hotels were operating as compared with 43 at June 30, 1999. Other revenues
declined $0.1 million  primarily  because the Company  earned no  development or
construction  revenue in the current year quarter  compared to $64,000 earned in
the prior year quarter.

Hotel operating expenses increased approximately $1.3 million, or 16%, from $8.0
million in 1999 to $9.2 million in 2000.  The  fifty-seven  hotels that operated
the full  quarter  in both  1999  and 2000  accounted  for $0.6  million  of the
increase. The six hotels opened or acquired by the Company between April 1, 1999
and March  31,  2000 and  operated  for the full  quarter  ended  June 30,  2000
accounted for $0.6 million of the increases, while the one hotel that was opened
by the Company during the quarter ended June 30, 2000 accounted for $0.1 million
of the increase in hotel operating expense.

Corporate  operating expenses increased $1.0 million or 58% from $1.7 million in
1999 to $2.7 million in 2000. Of this increase,  approximately  $0.6 million was
attributable   to  incremental   operating   expenses   incurred  by  GuestHouse
International.   Additionally,   the  amount  of  corporate  overhead  that  was
project-related,   and  is  therefore   capitalized   as   land-acquisition   or
hotel-construction  cost, was $0.1 million less in 2000 than in 1999.  Excluding
the   incremental   impact  on  reported   operating   expenses  of   GuestHouse
International and lower  capitalization of project-related  expenses,  corporate
operating expenses in the quarter ended June 30, 2000 increased by $0.3 million,
or 12%,  over such amounts for the 1999  quarter.  The primary  reasons for such
increase were $0.2 million for additional  staffing needed to support the growth
of the Company's  franchising  business and $0.1 million for increased  rent for
the Corporate headquarters.

Depreciation  and  amortization  increased by $0.4  million,  or 21%,  from $2.0
million in 1999 to $2.4 million in 2000.  Hotel  properties  accounted  for $0.3
million of the increase. In addition, $0.1 million was attributable to leasehold
improvement  and equipment at the corporate  headquarters  and  amortization  of
certain intangible assets (franchise contract rights and goodwill) recognized in
connection  with the GuestHouse  International  acquisition in June 1999 and the
hotel acquisition during the quarter ended March 31, 2000.

The six hotels opened or acquired by the Company between April 1, 1999 and March
31,  2000  accounted  for $0.2  million  of the  increase  in  depreciation  and
amortization for hotel properties while the fifty-seven hotels that operated for
the full  quarter  in both  1999  and 2000  accounted  for $0.1  million  of the
increase.



                                     Page 9
<PAGE>

The reserve  for loss on property  sale  recorded  in the current  year  quarter
represents  the write-down of an  undeveloped  site that the Company  expects to
sell at a $545,000 pre-tax loss.

Interest expense,  net of interest  capitalized of $0.2 million and $0.5 million
in 2000 and 1999  respectively,  was $2.1  million  in 2000 and $1.5  million in
1999.  The increase in total  interest  charges  incurred  was due  primarily to
higher levels of debt outstanding.

The  proceeds  from legal  settlement  of $842,000  recorded in the current year
quarter  represents  amounts  received in settlement of a claim for lost profits
associated with an abandoned development project.

COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 2000 TO THE SIX MONTHS ENDED
JUNE 30, 1999

Hotel revenues increased by $4.8 million,  or 16%, from $29.2 million in 1999 to
$34.0 million in 2000.  The largest  portion ($2.8  million) of the increase was
attributed to the nine hotels opened by the Company during 1999 and operated for
the full six-month period ended June 30, 2000. The Company opened two hotels and
acquired one hotel during the six-month  period ended June 30, 2000. These three
hotels  accounted  for $1.1  million  of the  increase.  Fifty-two  hotels  that
operated for the full six-month  period in both 1999 and 2000 also accounted for
$1.1 million of the increase in hotel revenues. These fifty-two hotels increased
their combined  Average Weekly Rate (AWR) by 3%, from $187.99 in 1999 to $193.82
in 2000.  Occupancies  at these hotels  declined  from 79.0% in 1999 to 78.1% in
2000,  while Weekly  Revenue per  Available  Room  (RevPAR)  increased  2%, from
$147.83 in 1999 to $151.08 in 2000. For all Company-owned  hotels, AWR increased
to $196.62 in 2000 from  $190.02 in 1999,  occupancy  increased to 77.8% in 2000
compared to 77.4% in 1999,  and weekly RevPAR  increased to $152.59 in 2000 from
$145.97 in 1999.

The increases  contributed by these three groups of hotels were offset by a $0.2
million decrease in hotel revenues in a hotel that was owned and operated by the
Company until sold to a franchisee in February 1999.

Franchise and other revenues increased by $0.8 million,  or 55%, to $2.4 million
in 2000. The largest portion ($0.5 million) of the increase was  attributable to
incremental franchise fees and royalties for the GuestHouse International brand,
which was acquired on June 1, 1999.  Franchise fees for the Suburban Lodge hotel
brand  increased  $0.2 million due to the larger number of franchised  locations
open  during  the first six  months of 2000.  At June 30,  2000,  52  franchised
Suburban  Lodge  hotels were  operating  as compared  with 43 at June 30,  1999.
Another $0.1  million of the  increase  was the result of  increased  management
fees.  At June 30,  2000,  the  Company  managed 13 hotels  for its  franchisees
compared  to 20 hotels at June 30,  1999.  The  decline in the number of managed
hotels was due to decisions by one franchise group to start a management company
to manage its four Suburban  Lodge hotels and other  properties,  and by another
franchise group to move the management of two of its Suburban Lodge hotels to an
independent  management  company.  Also one of the hotels managed by the Company
during the prior year  quarter  was  acquired  by the  Company  during the first
quarter of 2000.

Hotel operating  expenses  increased  approximately  $3.1 million,  or 20%, from
$15.3  million  in 1999 to $18.4  million in 2000.  The  fifty-two  hotels  that
operated  the full  six-month  period in both 1999 and 2000  accounted  for $1.4
million of the increase.  The nine hotels opened by the Company  during 1999 and
operated for the full  six-month  period ended June 30, 2000  accounted for $1.1
million of the increase,  while the three hotels that opened or were acquired by
the Company  during the six-month  period ended June 30, 2000 accounted for $0.6
million of the increase in hotel operating expense.

Corporate  operating expenses increased $2.2 million or 64% from $3.4 million in
1999 to $5.6 million in 2000. Of this increase,  approximately  $1.1 million was
attributable   to  incremental   operating   expenses   incurred  by  GuestHouse
International.   Additionally,   the  amount  of  corporate  overhead  that  was
project-related,   and  is  therefore   capitalized   as   land-acquisition   or
hotel-construction  cost, was $0.4 million less in 2000 than in 1999.  Excluding
the   incremental   impact  on  reported   operating   expenses  of   GuestHouse
International and lower  capitalization of project-related  expenses,  corporate
operating  expenses for the  six-month  period ended June 30, 2000  increased by


                                    Page 10
<PAGE>

$0.7  million,  or 16%,  over such amounts for the 1999  six-month  period.  The
primary  reasons for such  increase  were $0.5 million for  additional  staffing
needed to support the growth of the business and $0.2 million for increased rent
for the Corporate headquarters.

Depreciation  and  amortization  increased by $1.0  million,  or 26%,  from $3.8
million in 1999 to $4.8 million in 2000.  Hotel  properties  accounted  for $0.8
million of the increase. In addition, $0.2 million was attributable to leasehold
improvements  and equipment at the corporate  headquarters  and  amortization of
certain intangible assets (franchise contract rights and goodwill) recognized in
connection  with the GuestHouse  International  acquisition in June 1999 and the
hotel acquisition during the current year six-month period.

The nine hotels opened by the Company  during 1999 accounted for $0.4 million of
the  increase  in  depreciation  and  amortization  for  hotel  properties.  The
fifty-two  hotels that operated for the full  six-month  period in both 1999 and
2000 accounted for $0.3 million of the increase while the three hotels opened or
acquired by the Company during the current year six-month  period  accounted for
$0.1 million of the increase.

The reserve for loss on property  sale  recorded in the current  year  six-month
period represents the write-down of an undeveloped site that the Company expects
to sell at a $545,000 pre-tax loss.

During the first  quarter  of 1999,  the  Company  sold a hotel  resulting  in a
pre-tax gain of  approximately  $1,145,000.  The hotel continues to operate as a
Suburban Lodge under franchise and management agreements that generate franchise
and management fee income for the Company.

Interest expense,  net of interest  capitalized of $0.4 million and $1.2 million
in 2000 and 1999  respectively,  was $4.1  million  in 2000 and $2.8  million in
1999.  The increase in total  interest  charges  incurred  was due  primarily to
higher levels of debt outstanding.

The  proceeds  from legal  settlement  of $842,000  recorded in the current year
six-month period  represents  amounts received in settlement of a claim for lost
profits associated with an abandoned development project.

SEASONALITY

Following their initial ramp-up, the Company's hotels typically experience lower
average  occupancy  rates and total  revenues  in the first and fourth  calendar
quarters of each year.

LIQUIDITY AND CAPITAL RESOURCES

From May 29,  1996,  the date of the  Company's  initial  public  offering  (the
"IPO"),  through  December 31, 1998,  the Company  pursued a strategy of growing
principally through hotel development.  Accordingly, the number of Company-owned
hotels  grew from eight at May 29,  1996 to 53 at  December  31,  1998.  Capital
spending during this period  exceeded $200 million and the principal  sources of
capital included the proceeds from the 1996 IPO and two subsequent public equity
offerings  during 1997,  borrowings  under a bank credit  facility and operating
cash flow.

During the latter  portion of 1998,  the Company  revised  its debt  strategy to
emphasize more  traditional  longer-term  mortgages to fund the  construction of
hotels  rather  than  relying  on  bank  lines  of  credit  with  shorter  final
maturities.  The Company  plans to use its shorter  term bank  revolving  credit
facility to fund special projects,  repurchase shares of its outstanding  common
stock and meet operating cash needs as necessary.

On February 18, 2000, the Company executed a bank line of credit with SouthTrust
Bank. The line of credit provides a revolving  credit facility for amounts up to
$15 million.  Borrowings under the facility will bear interest, at the Company's
option,  at (i) the  bank's  prime  rate or (ii) the  Euro-Rate  plus 275  basis
points.  Borrowings  under the  credit  facility  are  secured by a pool of nine
hotels. At June 30, 2000, there were borrowings of $1,000,000  outstanding under
the line of credit.

                                    Page 11
<PAGE>

On March 28, 2000,  the Company  completed a $2,660,000  mortgage loan agreement
with Empire Financial Services, Inc. with an initial interest rate of 9.25%. The
interest  rate is  adjustable  at the end of each  twelve-month  period to rates
based on prime plus 50 basis points. During the initial twelve-month period, the
loan requires monthly payments of principal and interest  totaling $24,362 based
on a principal amortization period of 20 years with a final maturity of March 1,
2007. One Company-owned hotel is pledged as collateral on this loan.

At June 30, 2000, the Company had approximately $105.3 million outstanding under
long-term  mortgage loan  arrangements,  including amounts classified as current
maturities of long-term debt at that date. In the aggregate, these loans require
monthly  principal and interest  payments of $850,000.  The final  maturities on
these loans range from February 1, 2005 to July 1, 2009.

In the fall of 1999,  the Company  licensed to  HotelTools,  Inc. the use of its
proprietary  hotel  management  and  reservation   systems,  and  at  that  time
HotelTools  assumed the costs of the continued  maintenance  and  development of
these  systems.  HotelTools  intends  to  market  the fully  developed  systems,
including an  eCommerce  procurement  system,  to hotel,  owners and  operators,
including  Suburban Lodges.  The Chief Executive Officer and sole shareholder of
HotelTools,  Inc. is Seth Christian,  the former Vice President of Operations of
Suburban  Lodges of America,  Inc. and  President of Suburban  Management,  Inc.
Officers  of the Company  own  options  pursuant  to which they are  entitled to
acquire common stock of HotelTools, Inc.

As of the June 30, 2000,  the Company had loaned  HotelTools,  Inc.  $3,570,000,
and, if no additional funding is secured by HotelTools, the Company expects that
its loans will  aggregate  approximately  $7.5 million by December 31, 2000. The
Company anticipates that, without other funding from third parties, it will make
advances to HotelTools through  June 30, 2001.  The loans are payable on demand,
and bear  interest at an annual rate of 7.0%.  In  exchange  for the loans,  the
Company received from  HotelTools,  Inc. a stock purchase warrant to purchase up
to 20  million  shares of the  common  stock of  HotelTools  at a nominal  cost.
Although  such  shares  would  constitute  in  excess  of 99% of the  equity  of
HotelTools based on its present  capitalization,  HotelTools is actively seeking
equity  investors,  and it is expected  that the Company's  potential  ownership
through the exercise of its warrant will be reduced when such additional  equity
funding is secured.  In the event  HotelTools is unable to repay the loans,  the
Company would recognize a loss up to the full amount of its loans.

The Company has been  authorized  by its Board of Directors to  repurchase up to
4,500,000  shares of its  outstanding  common  stock.  As of June 30, 2000,  the
Company had purchased a total of 2,735,698 shares at a cost of $15,834,000.

At June 30, 2000, the Company had two hotels under  construction one of which is
expected to open during 2000. The other one is expected to open during the first
half of 2001.  The  Company had also begun  development  of a third  hotel.  The
Company   expects  that  the  costs  of   constructing   these  hotels  will  be
substantially provided by construction loans.

In the future,  the Company  expects  its cash  requirements  to be met by funds
generated  from   operations,   occasional   sales  of  its  hotel   properties,
construction  loans  made to build  out  certain  of its  unimproved  sites  and
borrowings under its bank line of credit.




                                    Page 12
<PAGE>

RECENT ACCOUNTING PRONOUNCEMENTS

In June 1998,  the  Financial  Accounting  Standards  Board issued  Statement of
Financial Accounting  Standards No. 133, "Accounting for Derivative  Instruments
and  Hedging  Activities"  ("SFAS  133"),  which was  modified  by SFAS No. 137,
"Accounting for Derivative  Instruments and Hedging Activities - Deferral of the
Effective  Date of FASB  Statement  No. 133." SFAS 133  requires  that an entity
recognize all  derivatives  as either assets or liabilities in the balance sheet
and measure those instruments at fair value. The Company plans to adopt SFAS 133
beginning  in the first  quarter of 2001,  and does not  presently  expect  such
adoption to have any effect on the Company's financial statements at that time.

In 1999, the Securities and Exchange  Commission's staff issued Staff Accounting
Bulletin ("SAB") No. 101, "Revenue Recognition in Financial Statements." SAB No.
101 provides guidance on revenue recognition.  The Company believes that SAB No.
101 will have no impact on its current revenue recognition policies.

FORWARD LOOKING STATEMENTS

Certain  statements in this Quarterly  Report on Form 10-Q  constitute  "forward
looking  statements"  within the  meaning of the Private  Securities  Litigation
Reform Act of 1995. Such forward-looking  statements are generally identified by
words such as "expects," "believes,"  "anticipates," etc., and involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results,  performances or achievements of the Company to be materially different
from the  expectation  expressed  or implied in such  statements.  Such  factors
include, among other things,  uncertainty as to economic conditions and interest
rates,  consumer demand for extended stay and other forms of lodging,  the level
of  competition  in the  extended  stay and  other  lodging  markets,  financial
markets, development efficiencies,  weather delays, zoning delays, the Company's
financial  condition,  and its ability to  maintain  operational  and  financial
systems to manage the rapid growth it has experienced.


ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to changes in interest rates primarily as a result of its
borrowing activities.

At December 31, 1999, the Company had debt  outstanding  totaling $99.1 million.
Approximately  $74.7 million of this amount was  represented  by mortgage  loans
with an interest  rate of 8.25% that is fixed until the debt  matures on January
1, 2009.  Another  $13.6  million  was  represented  by  mortgage  loans with an
interest  rate of 8.8% that is fixed until the debt matures on July 1, 2009.  An
additional $10.1 million was represented by three mortgage loans with an initial
weighted  average  interest  rate  of  8.38%.  The  rates  on  all  three  loans
automatically  adjust to an average  rate of 0.625% over the prime rate on April
1, 2002. The rates will remain fixed at this  newly-adjusted rate until April 1,
2005,  at  which  time one of the  loans  will  mature  and the  other  two will
re-adjust  based on the  then-current  prime interest rate.  These remaining two
loans will mature on April 1, 2008.

During the six months ended June 30, 2000, the Company issued additional debt of
$5.9 million.  Of this amount,  $2.7 million was  represented by a mortgage loan
with an  initial  interest  rate of 9.25%.  The rate on this loan  automatically
adjusts to a rate of 0.5% over the prime rate on April 1, 2001 and on April 1 of
each subsequent year until the debt matures on March 1, 2007. An additional $3.2
million  represents  borrowings  made on two  construction  loans.  The  initial
interest  rate  on one of the  construction  loans  is  8.75%.  This  rate  will
automatically  adjust to 0.50%  over the prime rate on October 1, 2002 and again
an October 1, 2005. This loan will mature on September 1, 2006.  Interest on the
other  construction  loan is a variable  daily rate equal to the prime rate plus
0.75%.  On August 1, 2001  this  loan will  convert  to a fixed  rate loan at an
interest rate of 250 basis points in excess of the weekly  average yield on U.S.
Treasury  Securities adjusted to a constant maturity of three years as of August
1, 2001. This loan will mature on February 1, 2005.

                                    Page 13
<PAGE>

Except for reductions in the loan balances  resulting from scheduled  amortizing
payments, the Company presently expects to hold all of the loans described above
until their scheduled maturities. Accordingly, a change in market interest rates
is not  expected to  significantly  impact the cost of these  obligations  until
April 1, 2001.

On February 18, 2000, the Company executed a bank line of credit with SouthTrust
Bank. The line of credit provides a revolving  credit facility for amounts up to
$15 million.  Borrowings under the facility will bear interest, at the Company's
option,  at (i) the  bank's  prime  rate or (ii) the  Euro-Rate  plus 275  basis
points.  At June 30, 2000, there were borrowings of $1,000,000 outstanding under
the line of  credit.  Fluctuations  in short  term  interest  rates will have an
immediate impact on the cost of funds borrowed under this arrangement.

The  Company's  cash and  cash  equivalents  are  short-term  and  highly-liquid
investments  with original  maturities of three months or less.  Accordingly,  a
change in market interest rates has a nearly immediate effect on interest earned
by the Company on its invested cash.  For the  foreseeable  future,  the Company
reasonably  expects that its average invested cash balance will approximate $4.0
million.  Accordingly,  each one percent  change in market  interest  rates will
change interest income by approximately $40,000 on an annual basis.


                                    Page 14
<PAGE>

 PART II. OTHER INFORMATION AND SIGNATURES

Item 1.  Legal Proceedings

         None

Item 4   Submission of Matters to a Vote of Security Holders

         On May 11, 2000, the Company held its annual  meeting of  shareholders.
         The  purpose of the meeting was to  re-elect  one  director  whose term
         expired in 2000. At the meeting, Mr. John W. Spiegel was re-elected for
         a three-year  term,  which expires in 2003. The number of votes cast in
         favor of Mr.  Spiegel was  12,788,434,  against or withheld was 13,588.
         The Company's  other  directors  are Messrs.  James R. Kuse and Michael
         McGovern, whose terms expire in 2001, and Messrs. David E. Krischer and
         Dan J. Berman, whose terms expire in 2002.

Item 6.  Exhibits and Reports on Form 8-K

         (a)      Exhibits

                  27 - Financial Data Schedule (For SEC use only)

         (b)      Reports on Form 8-K

         None


                                   Signatures


         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 thereunto duly authorized.



                                             Suburban Lodges of America, Inc.


Date:  August 14, 2000                By:  /s/ Paul A. Criscillis, Jr.
       ---------------                     ---------------------------
                                               Paul A. Criscillis, Jr.
                                               Vice President and Chief
                                               Financial Officer


Date:  August 14, 2000               By:   /s/ Robert E. Schnelle
       ----------------                    ----------------------
                                               Robert E. Schnelle
                                               Vice President and Treasurer
                                               (Chief Accounting Officer)