U.S. Securities and Exchange Commission

Washington, D.C. 20549



Form 10-QSB





[X] Quarterly report pursuant section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended:  September 30, 2001.



[ ] Transition report pursuant section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from

to

.



Commission file number:  333-45210



Supreme Hospitality

(Exact name of small business issuer as specified in its charter)



Nevada

88-0460457

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)



41919 Skywood Drive, Temecula, California 92591

(909) 506-3435

(Address of principal executive office)

(Issuers telephone Number)





Check whether the issuer:

(1) Filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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[ ]



Applicable only to corporate issuers:

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  10 million shares outstanding of Common Stock.



Transitional Small Business Disclosure Format (check one):Yes.[ ]

No[X]





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Table of Contents



|Part I:  Financial Information                                     | 3
|------------------------------------------------------------------ | -
|Item 1:  Financial Statements                                      | 3
|Condensed and Consolidated Balance Sheets                          | 3
|Condensed and Consolidated Statements of Operations                | 4
|Condensed and Consolidated Statement of Cash Flows                 | 5
|Condensed Consolidated Statement of Stockholders Equity (Deficit)  | 6
|Notes to Financial Statements                                      | 7
|Item 2:  Managements Discussion and Analysis or Plan of Operation | 8
|Part II:  Other Information                                        | 8
|Item 6:  Exhibits and Reports on Form 8-k                          | 8
|Signatures                                                         | 8
|                                                                   |  



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Part I:  Financial Information

Item 1:  Financial Statements

SUPREME HOSPITALITY AND SUBSIDIARY

CONDENSED AND CONSOLIDATED BALANCE SHEETS



|                                               | September 30, 2001
(unaudited) | December 31, 2000
|---------------------------------------------- | ------------------------------ | -----------------
|ASSETS                                         |                                |                  
|Current Assets                                 |                                |                  
|Cash                                           | $12,272                        | $2,677           
|Trade accounts receivable                      | 45,328                         | 53,116           
|Other                                          | 4,654                          | 4,615            
|Total Current Assets                           | 62,254                         | 60,408           
|Property and Equipment At Cost,                |                                |                  
|Less accumulated depreciation of               |                                |                  
|$756,448                                       | 4,803,490                      | 5,000,886        
|Other Assets:                                  |                                |                  
|Deferred offering costs                        | 81,000                         | 81,000           
|Loan fees, net                                 | 17,299                         | 21,034           
|Initial franchise fee, net                     | -                              | 24,333           
|Other assets                                   | 102,866                        | 10,200           
|Total other assets                             | 201,165                        | 136,567          
|                                               | $5,066,909                     | $5,197,861       
|Liabilities and Stockholders Equity (Deficit) |                                |                  
|                                               |                                |                  
|Current Liabilities                            |                                |                  
|Trade accounts payable                         | $408,869                       | $234,159         
|Related party loans                            | 633,999                        | 492,123          
|Accrued Interest                               | 58,447                         |                  
|Accrued liabilities                            | 167,568                        | 126,368          
|Current maturities of long-term debt           | 254,686                        | 287,309          
|Other Liabilities                              | 48,166                         |                  
|Total Current Liabilities                      | 1,571,735                      | 1,139,959        
|                                               |                                |                  
|Long-Term Debt, Less Current Maturities        | 4,774,378                      | 4,936,555        
|Total Liabilities                              | 6,346,113                      | 6,076,514        
|                                               |                                |                  
|Commitments and Contingencies                  |                                |                  
|Stockholders Equity (Deficit)                 |                                |                  
|Preferred stock, $.0001 par value; authorized  |                                |                  
|1,000,000 shares;  none outstanding            | --                             | --               
|Common stock, $.0001 par value; authorized     |                                |                  
|50,000,000 shares;  10,000,000 outstanding     | 1,000                          | 1,000            
|Paid-in Capital                                | 4,500                          | 1,500            
|Accumulated (deficit)                          | (1,287,704)                    | (881,153)        
|Total Stockholders Equity (Deficit)           | (1,279,204)                    | (878,653)        
|                                               | 5.066,909                      | 5,197,861        

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

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SUPREME HOSPITALITY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)





|Nine Months Ended
September 30,
|-------------------------------

|                                                     | 2001       | 2000      
|---------------------------------------------------- | ---------- | ----------
|REVENUES                                             | $1,353,081 | $1,086,814
|                                                     |            |           
|EXPENSES                                             |            |           
|Selling, general and administrative                  | 1,068,862  | 592,826   
|Depreciation and amortization                        | 205,275    | 205,882   
|Interest                                             | 438,547    | 432,783   
|                                                     |            |           
|NET (LOSS)                                           | (395,603)  | $(144,677)
|NET (LOSS) PER SHARE                                 | $(0.01)    | $(0.01)   
|                                                     |            |           
|Weighted Average Number of Common Shares Outstanding | 10,000,000 | 10,000,000
|                                                     |            |           
|                                                     |            |           

























































SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

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SUPREME HOSPITALITY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)



| | Nine Months Ended
September 30,
| | -------------------------------

|                                                          | 2001       | 2000      
|--------------------------------------------------------- | ---------- | ----------
|Cash Flows From Operating Activities                      |            |           
|Net loss                                                  | $(395,603) | $(144,677)
|Adjustments to reconcile net (loss) to net cash provided: |            |           
|Depreciation and amortization                             | 205,275    | 205,882   
|(Increase) decrease in assets:                            |            |           
|Trade accounts receivable                                 | 45,328     | 8,710     
|Other current assets                                      | 4,654      |           
|Increase (decrease) in liabilities:                       |            |           
|Trade accounts payable                                    | 408,869    | 243,384   
|Accrued liabilities                                       | 167,568    | 379,901   
|NET CASH PROVIDED (USED)BY OPERATING ACTIVITIES:          | 436,091    | 693,200   
|                                                          |            |           
|CASH FLOWS FROM INVESTING ACTIVITIES                      |            |           
|Deferred offering costs                                   | -          | -         
|Other                                                     | 3,000      | 3,000     
|NET CASH (USED BY) INVESTING ACTIVITIES:                  | 3,000      | 3,000     
|                                                          |            |           
|CASH FLOWS FROM FINANCING ACTIVITIES:                     |            |           
|Purchase of equipment                                     | -          | --        
|Related party loans                                       | 633,999    | 450,383   
|Loan repayments                                           |            |           
|NET CASH PROVIDED BY
FINANCING ACTIVITIES                 | 633,999    | 450,383   
|NET INCREASE IN CASH                                      | 1,073,090  |           
|CASH, AT BEGINNING OF
PERIOD                              | $12,272    | 14,021    
|CASH, AT END OF PERIOD                                    | $17,017    | 17,017    
|                                                          |            |           
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION          |            |           
|Cash paid for interest                                    | $          | $407,725  
|                                                          |            |           

















SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS



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SUPREME HOSPITALITY AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (DEFICIT)





| | COMMON STOCK
| | ------------

|                             | SHARES     | AMOUNT | PAID-IN CAPITAL | ACCUMULATED (DEFICIT) | TOTAL      
|---------------------------- | ---------- | ------ | --------------- | --------------------- | -----------
|(unaudited)                  |            |        |                 |                       |            
|Balances December 31, 1999   | 10,000,000 | $1,000 | $1,500          | $(513269)             | $(510,769) 
|Net (loss) for the year      |            |        |                 | (367,884)             | (367,884)  
|                             |            |        |                 |                       |            
|Balances, December 31, 2000  | 10,000,000 | 1,000  | 1,500           | (881,153)             | (878,653)  
|(unaudited)                  |            |        |                 |                       |            
|Net (loss) for the quarter   |            |        |                 | (123,528)             | (123,528)  
|                             |            |        |                 |                       |            
|Balances, March 31, 2001     | 10,000,000 | 1,000  | 1,500           | (1,004,681)           | (1,002,181)
|Net (loss) for the quarter   |            |        |                 | (201,002)             | (201,002)  
|Balances, June 30, 2001      | 10,000,000 | $1,000 | $1,500          | $(1,205,683)          | $(1,203,183
|                             |            |        |                 |                       |            
|Balances, September 30, 2001 | 10,000,000 | $1,000 | $4,500          | $(395,033)            |            
|Net (loss) for the quarter   |            |        |                 | $(  )                 |            





















































SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS

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SUPREME HOSPITALITY

NOTES TO FINANCIAL STATEMENTS

Note 1. BASIS OF PRESENTATION



In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Companys financial position as of September 30, 2001 and results of its operations and cash flows for the nine months ended September 30, 2001 and 2000 have been made.  Operating results for the nine months ended September 30, 2001 are not necessarily indicative of the results that may be expected for the year ended December 31, 2001.



These condensed financial statements should be read in conjunction with the financial statements and notes thereto contained in the Companys Form 10-K for the year ended December 31, 2000











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Item 2:  Managements Discussion and Analysis or Plan of Operation



Supreme Hospitality was organized for the purpose of creating a corporate vehicle to seek, investigate and, if such investigation warrants, acquire an interest in one or more business opportunities presented to it by persons or firms who or which desire to seek perceived advantages of a publicly held corporation.  On April 30, 2000 Supreme Hospitality acquired Temecula Valley Inn, a Nevada Corporation as a wholly owned subsidiary of Supreme Hospitality in an exchange of Common Stock, Sub Curia.  The primary activity of Supreme Hospitality is the hospitality business for both the business and leisure traveler.



Part II:  Other Information

Item 6:  Exhibits and Reports on Form 8-K

(a) Exhibits Schedule

The exhibits marked with an * were filed with the companys registration statement, form 10SB12G filed on 06/14/2000.



*3.1 Articles of Incorporation

*3.2 Bylaws



(b) Reports on Form 8-K:  No reports for this quarter.

Signatures

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



Supreme Hospitality

(Registrant)



By: /s/ Larry W. Lang

--------------------------------------

Larry W. Lang

Chairman, Sole Director, President

and Secretary/Treasurer (Principal

and Accounting Officer)



Date:  November 14, 2001



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