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 March 31, 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
May 5, 2000:

                                   13,608,374


<PAGE>
PART I, ITEM I.  FINANCIAL STATEMENTS

                               SUBURBAN LODGES OF AMERICA, INC.
                                 Consolidated Balance Sheets
                                        (in thousands)
<TABLE>
<CAPTION>
                                                                  (Unaudited)
                                                                   March 31,     December 31,
                                                                     2000           1999
                                                                  -----------    ------------
<S>                                                                <C>             <C>
ASSETS
Current assets:
     Cash and cash equivalents                                     $  6,073        $  9,862
      Accounts receivable, net of reserves of
          $235 (2000) and $191 (1999)                                 2,994           2,196
     Hotel inventory and supplies                                     2,279           2,290
     Prepaid and refundable income taxes                                874           1,163
     Deferred income taxes                                              461             448
     Prepaid expenses and other current assets                        1,782           1,511
                                                                   --------        --------
           Total current assets                                      14,463          17,470

Property and equipment, net of accumulated depreciation and
     amortization of $20,911 (2000) and $18,600 (1999)              296,010         291,269

Notes receivable                                                      4,992           4,992
Acquired intangible assets - net                                      3,719           3,617
Deferred loan costs                                                   2,186           1,721
Other assets                                                          1,608           2,013
                                                                   --------        --------
TOTAL ASSETS                                                       $322,978        $321,082
                                                                   ========        ========

LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:

     Current portion of long-term debt                             $  1,308        $  1,228
     Construction accounts payable                                    1,995           1,752
     Trade accounts payable                                           1,542           3,207
     Accrued property taxes                                             708           1,113
     Accrued wages and benefits                                         938             507
     Other accrued liabilities                                        1,296             615
     Other current liabilities                                          797             591
                                                                   --------        --------
          Total current liabilities                                   8,584           9,013

Long-term debt, excluding current portion                           101,040          97,891
Deferred income taxes                                                 2,290           2,333
Other liabilities                                                        84              84
                                                                   --------        --------
          Total liabilities                                         111,998         109,321
                                                                   --------        --------

Shareholders' equity:
     Common stock                                                       157             157
     Additional paid-in capital                                     202,250         202,250
     Retained earnings                                               19,900          19,345
                                                                   --------        --------
                                                                    222,307         221,752
       Less treasury stock, at cost                                  11,327           9,991
                                                                   --------        --------
            Shareholders' equity, net                               210,980         211,761
                                                                   --------        --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                         $322,978        $321,082
                                                                   ========        ========


            See accompanying notes to unaudited consolidated financial statements.
</TABLE>
                                            Page 2
<PAGE>
                               SUBURBAN LODGES OF AMERICA, INC.
                            Consolidated Statements of Operations
                           (in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                                       (Unaudited)
                                                                    Three Months Ended
                                                            March 31, 2000     March 31, 1999
                                                            --------------     --------------
<S>                                                            <C>                <C>
Revenue:
      Hotel revenues                                           $ 15,959           $ 13,333
      Franchise and other revenue                                 1,136                606
                                                               --------           --------
           Total revenue                                         17,095             13,939
                                                               --------           --------


 Operating costs and expenses:
      Hotel operating expenses                                    9,159              7,325
      Corporate operating expenses                                2,859              1,667
      Depreciation and amortization                               2,398              1,809
                                                               --------           --------
                                                                 14,416             10,801
       Gain on sale of hotel                                                        (1,145)
                                                               --------           --------
            Operating costs and expenses - net                   14,416              9,656
                                                               --------           --------

 Income from operations                                           2,679              4,283

 Other income (expense):
      Interest income                                               245                305
      Interest expense                                           (2,046)            (1,265)
      Other                                                          10
                                                               --------           --------
           Income before income taxes                               888              3,323

 Provision for income taxes                                         333              1,226
                                                               --------           --------

 Net income                                                    $    555           $  2,097
                                                               ========           ========

 Earnings per common share:
      Basic and diluted                                        $   0.04           $   0.14
                                                               ========           ========


Weighted average number of common shares outstanding:

       Basic and diluted                                         13,870             15,429
                                                               ========           ========

            See accompanying notes to unaudited consolidated financial statements.
</TABLE>

                                           Page 3
<PAGE>
                                        SUBURBAN LODGES OF AMERICA, INC.
                                      Consolidated Statements of Cash Flows
                                                 (in thousands)
<TABLE>
<CAPTION>
                                                                                       (Unaudited)
                                                                                   Three Months Ended
                                                                             March 31, 2000      March 31, 1999
                                                                             --------------      --------------
<S>                                                                                <C>             <C>
OPERATING ACTIVITIES:
Net income                                                                      $    555           $  2,097
Adjustments to reconcile net income to
  net cash provided by operating activities:
  Depreciation and amortization                                                    2,398              1,809
  Gain on sale of hotel                                                                              (1,145)
  Changes in operating assets and liabilities:
     Accounts receivable                                                            (751)              (117)
     Other current assets                                                             92              2,974
     Other assets                                                                   (176)              (225)
     Trade accounts payable                                                       (1,726)              (175)
     Other current liabilities                                                       891                427
     Income taxes payable                                                                               403
     Other liabilities                                                                                   (3)
                                                                                --------           --------
          Net cash provided by operating activities                                1,283              6,045
                                                                                --------           --------

INVESTING ACTIVITIES:

     Additions to property and equipment                                          (3,502)           (12,183)
     Acquisition, net of cash acquired                                              (641)
     Increase (decrease) in construction accounts payable                            243             (5,647)
     Proceeds from sale of hotel property                                                             4,405
                                                                                --------           --------
          Net cash used by investing activities                                   (3,900)           (13,425)
                                                                                --------           --------

FINANCING ACTIVITIES:

     Proceeds from issuance of long-term debt                                      3,560             10,250
     Principal payments on long term debt                                         (2,931)            (6,803)
     Amounts borrowed under line of credit                                         5,000
     Repayment of line of credit borrowings                                       (5,000)
     Purchase of treasury stock                                                   (1,336)               (59)
     Net decrease (increase) in deferred loan costs                                 (465)                87
                                                                                --------           --------
          Net cash provided by (used by) financing activities                     (1,172)             3,475
                                                                                --------           --------


Net decrease in cash and cash equivalents                                         (3,789)            (3,905)

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

Cash and cash equivalents at end of period                                      $  6,073           $ 15,273
                                                                                ========           ========

Supplemental cash flow disclosures:

     Income taxes paid or (net refund received)                                 $    362           $ (1,932)
                                                                                ========           ========

     Interest paid, net of amounts capitalized                                  $  2,106           $  1,216
                                                                                ========           ========

                     See accompanying notes to unaudited 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 years
         ended December 31, 1999.

         All  significant  intercompany  balances  and  transactions  have  been
         eliminated.

2.     LONG-TERM DEBT

         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.

         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 March 31,
         2000, there were no borrowings outstanding under the line of credit.

         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.

3.     ACQUISITION

         On January 1, 2000, the Company  acquired the remaining 50% interest in
         a Suburban Lodge hotel in Atlanta,  Georgia 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.


                                     Page 5
<PAGE>
         The acquisition was treated as a purchase;  accordingly,  operations of
         the  acquired  company  are  included  in  the  unaudited  consolidated
         statement  of  operations  commencing  on  the  acquisition  date.  The
         Company's   allocation  of  purchase  price  to  assets   acquired  and
         liabilities assumed was as follows (in thousands):


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

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  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  and  other
         nonoperating income.

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

                                                                        Corporate and
                                             Hotel       Franshising       Support
                                           Operations    Operations        Services    Total
                                       -----------------------------------------------------
<S>                                        <C>              <C>            <C>       <C>
Quarter ended March 31, 2000
Revenues from external customers           $ 15,959         $ 786          $ 350     $ 17,095
Intersegment revenues                                         635            926        1,561
Depreciation and amortization                 2,147            85            166        2,398
Net operating income (loss)                   3,220            (1)          (540)       2,679

Quarter ended March 31, 1999
Revenues from external customers           $ 13,333         $ 383          $ 223     $ 13,939
Intersegment revenues                                         536            668        1,204
Depreciation and amortization                 1,702             3            104        1,809
Net operating income (loss)                   3,103           432           (397)       3,138
</TABLE>


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

          Quarter Ended March 31,                       2000         1999
                                                        ----         ----

          Total segment net operating income          $ 2,679       $ 3,138
          Interest income                                 245           305
          Gain on sale of hotel                                       1,145
          Interest expense                             (2,046)       (1,265)
          Other                                            10
                                                      -------       -------
          Income before income taxes                  $   888       $ 3,323
                                                      =======       =======


         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

         During  1998,  the Company  entered  into a joint  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 also owned a
         25% equity  position in this  venture.  In December  1998,  the Company
         acquired an option to purchase the director's  interest in this venture
         for a total  consideration  of $300,000,  including the amount paid for
         the option  ($230,000).  On August 1, 1999,  the Company  exercised its
         option to  purchase  the  director's  interest.  The hotel owned by the


                                     Page 7
<PAGE>

         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 MARCH 31, 2000 TO THE QUARTER  ENDED MARCH 31,
1999

Hotel revenues increased by $2.7 million,  or 20%, from $13.3 million in 1999 to
$16.0 million in 2000.  The largest  portion ($1.7  million) of the increase was
attributed to the nine hotels opened by the Company during 1999 and operated for
the full quarter ended March 31, 2000. The Company opened one hotel and acquired
one hotel during the quarter  ended March 31, 2000.  These two hotels  accounted
for $0.5 million of the  increase.  Fifty-two  hotels that operated for the full
quarter in both 1999 and 2000  accounted  for $0.6  million of the  increase  in
hotel revenues.  These fifty-two  hotels increased their combined Average Weekly
Rate (AWR) by 4%, from $186.85 in 1999 to $194.06 in 2000.  Occupancies at these
hotels  declined from 75.3% in 1999 to 74.0% in 2000,  while Weekly  Revenue per
Available  Room (RevPAR)  increased 2%, from $139.48 in 1999 to $142.72 in 2000.
For all Company-owned  hotels,  AWR increased to $196.80 in 2000 from $188.32 in
1999,  occupancy  was  approximately  flat at 73.8% in 2000 compared to 74.0% in
1999, and weekly RevPAR increased to $144.44 in 2000 from $138.10 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 $0.5 million,  or 87%, to $1.1 million
in 2000. The largest portion ($0.3 million) of the increase was  attributable to
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 first  quarter of 2000.  At March 31, 2000,  49  franchised  Suburban
Lodge hotels were operating as compared with 37 at March 31, 1999.  Another $0.1
million of the increase was the result of increased  management  fees.  At March
31, 2000, the Company managed 20 hotels for its franchisees, including one hotel
that was in the process of  conversion to a Suburban  Lodge hotel.  At March 31,
1999, the Company managed 15 hotels for its franchisees.

Hotel operating expenses increased approximately $1.8 million, or 25%, from $7.3
million in 1999 to $9.2 million in 2000. The fifty-two  hotels that operated the
full quarter in both 1999 and 2000  accounted  for $0.9 million of the increase.
The nine hotels  opened by the Company  during  1999 and  operated  for the full
quarter ended March 31, 2000 accounted for $0.7 million of the increases,  while
the two hotels  that opened or were  acquired by the Company  during the quarter
ended  March 31,  2000  accounted  for $0.2  million  of the  increase  in hotel
operating expense.

Corporate  operating expenses increased $1.2 million or 72% from $1.7 million in
1999 to $2.9 million in 2000. Of this increase,  approximately  $0.5 million was
attributable  to  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 $0.3
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
March 31, 2000 increased by $0.4 million, or 19%, 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  business  and $0.1  million  for
increased rent for the Corporate headquarters.

Depreciation  and  amortization  increased by $0.6  million,  or 33%,  from $1.8
million in 1999 to $2.4  million in 2000.  Of this  increase,  $0.1  million was
attributable   to  leasehold   improvements   and  equipment  at  the  corporate
headquarters.  Hotel properties  accounted for $0.4 million of the increase.  In
addition,  $0.1 million was  attributable to amortization of certain  intangible
assets  (franchise  contract rights and goodwill)  recognized in connection with
the GuestHouse International acquisition.


                                     Page 9
<PAGE>
The nine hotels opened by the Company  during 1999 accounted for $0.3 million of
the increase in depreciation  and  amortization  for hotel  properties while the
fifty-two  hotels  that  operated  for the full  quarter  in both  1999 and 2000
accounted for $0.1 million of the increase.

Interest expense,  net of interest  capitalized of $0.2 million and $0.8 million
in 2000 and 1999  respectively,  was $2.0  million  in 2000 and $1.3  million in
1999. The increase in total interest  charges  incurred was due to higher levels
of debt outstanding.

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 March 31, 2000, there were no borrowings  outstanding under the line
of credit.

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 March 31, 2000,  the Company had  approximately  $102.3  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  $821,000.   The  final
maturities on these loans range from March 1, 2005 to July 1, 2009.

The Company has been  authorized  by its Board of Directors to  repurchase up to
3,000,000  shares of its  outstanding  common stock.  As of March 31, 2000,  the
Company had purchased a total of 2,018,100 shares at a cost of $11,327,000.

At March 31, 2000,  the Company had three hotels  under  construction  which are
expected to open during 2000. The cash to fund the  construction of these hotels
will be provided from construction loans. The Company had also begun development
of a fourth hotel that it presently  expects to fund with a combination  of line
of credit borrowings and cash generated by operations.


                                    Page 10
<PAGE>
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.

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.

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 quarter ended March 31, 2000, the Company issued  additional  debt of
$3.6 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 $0.9
million represents  borrowings made on a construction loan with an interest rate
of 8.75%.

Except for reductions in the loan balances  resulting from scheduled  amortizing
payments, the Company presently intends to hold all of the loans described above
until their scheduled maturities. Accordingly, a change in market interest rates
is not expected to 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


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<PAGE>
points.  At March 31, 2000, there were no borrowings  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.

PART II. OTHER INFORMATION AND SIGNATURES

Item 1.  Legal Proceedings
         -----------------

         None

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:  May 15, 2000                         By:  /s/ Paul A. Criscillis, Jr.
       ------------                              ---------------------------
                                                     Paul A. Criscillis, Jr.
                                                     Vice President and Chief
                                                     Financial Officer


Date:  May 15, 2000                         By: /s/ Robert E. Schnelle
       -------------                            ----------------------
                                                    Robert E. Schnelle
                                                    Vice President and Treasurer
                                                    (Chief Accounting Officer)




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