U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB
(Mark One)

    [X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
            SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended         JUNE 30, 1997
                                               ---------------------------------
    [ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
            EXCHANGE ACT OF 1934

                  For the transition period from _______  to _______

                         Commission file number     0-22132
                                                --------------

                          BUCKHEAD AMERICA CORPORATION
--------------------------------------------------------------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

           DELAWARE                                        58-2023732
------------------------------------        ------------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization

           4243 DUNWOODY CLUB DRIVE, SUITE 200, ATLANTA, GEORGIA 30350
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (770) 393-2662
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

                                       N/A
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

    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:     July 31, 1997
                                                      -----------------
  
           Common stock, par value $.01 - 1,872,447 shares outstanding
           -----------------------------------------------------------

    Transitional Small Business Disclosure Format (Check one):
Yes       No  X
    ---      ---
                                        1

<PAGE>



                         PART I - FINANCIAL INFORMATION

                          Item 1. Financial Statements


                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                   Consolidated Condensed Financial Statements

                             June 30, 1997 and 1996

                                   (Unaudited)









































                                        2


<PAGE>
                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                      Consolidated Condensed Balance Sheet
                                  June 30, 1997
                                   (Unaudited)


                                     Assets
                                     ------

Current assets:
   Cash and cash equivalents, including
    restricted cash of $807,193                                    $  1,764,961
   Short-term investments                                             1,504,806
   Current portions of notes receivable                                 598,681
   Other current assets                                               1,333,712
                                                                   ------------
         Total current assets                                         5,202,160

Noncurrent portions of notes receivable                                 653,754
Property and equipment, at cost, net of
   accumulated depreciation                                          23,700,624
Deferred costs                                                        1,598,941
Long-term investments                                                   744,802
Other assets                                                          2,874,826
                                                                   ------------

         Total assets                                              $ 34,775,107
                                                                   ============

                      Liabilities and Shareholders' Equity
                      ------------------------------------

Current liabilities:
   Accounts payable and accrued expenses                           $  2,553,183
   Current portions of notes payable                                  1,016,951
                                                                   ------------
         Total current liabilities                                    3,570,134

Noncurrent portions of notes payable                                 15,992,325
Other liabilities                                                       140,735
                                                                   ------------
         Total liabilities                                           19,703,194
                                                                   ------------

Minority interest in partnership                                        650,338

Shareholders' equity:
   Common stock; par value $.01; 3,000,000
    shares authorized; 1,924,297 shares issued
    and 1,872,447 shares outstanding                                     19,243
   Additional paid-in capital                                         6,978,591
   Retained earnings                                                  7,846,062
   Treasury stock (51,850 shares)                                      (422,321)
                                                                   ------------
         Total shareholders' equity                                  14,421,575
                                                                   ------------

         Total liabilities and shareholders' equity                $ 34,775,107
                                                                   ============



See accompanying notes to consolidated condensed financial statements.

                                        3


<PAGE>



                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                   Consolidated Condensed Statements of Income
                     Six Months ended June 30, 1997 and 1996
                                   (Unaudited)





                                                             1997           1996
                                                       ----------     ----------
Revenues:
   Hotel revenues                                      $5,714,906      5,318,444
   Interest income                                        676,804        513,843
   Other income                                         1,549,355        863,829
                                                       ----------     ----------
           Total revenues                               7,941,065      6,696,116
                                                       ----------     ----------

Expenses:
   Hotel operations                                     4,287,805      3,787,818
   Depreciation and amortization                          458,544        483,700
   Other operating and administrative                   1,447,185        881,329
   Interest                                               613,542        779,709
                                                       ----------     ----------
          Total operating, administrative,
           and interest expenses                        6,807,076      5,932,556
                                                       ----------     ----------

          Income before income taxes                    1,133,989        763,560

Provision for income taxes                                   --             --
                                                       ----------     ----------

          Net income                                   $1,133,989        763,560
                                                       ==========     ==========



Net income per common and common
   equivalent share                                    $      .61            .42
                                                       ==========     ==========


Weighted average number of common and
   common equivalent shares used to
   calculate net income per share                       1,854,790      1,810,855
                                                        =========      =========



See accompanying notes to consolidated condensed financial statements.

                                        4

<PAGE>



                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                   Consolidated Condensed Statements of Income
                    Three Months ended June 30, 1997 and 1996
                                   (Unaudited)





                                                             1997           1996
                                                       ----------     ----------
Revenues:
   Hotel revenues                                      $3,426,734      2,437,680
   Interest income                                        114,225        303,817
   Other income                                           594,678        507,368
                                                       ----------     ----------
           Total revenues                               4,135,637      3,248,865
                                                       ----------     ----------

Expenses:
   Hotel operations                                     2,655,545      1,897,639
   Depreciation and amortization                          268,244        246,600
   Other operating and administrative                     835,607        446,476
   Interest                                               356,494        397,695
                                                       ----------     ----------
          Total operating, administrative,
           and interest expenses                        4,115,890      2,988,410
                                                       ----------     ----------

          Income before income taxes                       19,747        260,455

Provision for income taxes                                   --             --
                                                       ----------     ----------

          Net income                                   $   19,747        260,455
                                                       ==========     ==========



Net income per common and common
   equivalent share                                    $      .01            .14
                                                       ==========     ==========

Weighted average number of common and
   common equivalent shares used to
   calculate net income per share                       1,887,585      1,818,497
                                                       ==========     ==========




See accompanying notes to consolidated condensed financial statements.

                                        5

<PAGE>
                                 BUCKHEAD AMERICA CORPORATION
                                       AND SUBSIDIARIES

                       Consolidated Condensed Statements of Cash Flows
                           Six Months Ended June 30, 1997 and 1996
                                         (Unaudited)

                                                           1997            1996
                                                    -----------     -----------

Cash flows from operating activities:
      Net income                                    $ 1,133,989         763,560
      Adjustments to reconcile net income
       to net cash provided (used) by
       operating activities:
      Depreciation and amortization                     458,544         483,700
      Gain on note sale                                (800,000)           --
      Other, net                                       (912,909)       (485,743)
                                                    -----------     -----------
         Net cash provided (used) by
          operating activities                         (120,376)        761,517
                                                    -----------     -----------

Cash flows from investing activities:
      Note receivable principal receipts                910,958       2,385,647
      Originations of notes receivable                 (320,000)       (282,389)
      Hotel assets acquired                                --        (2,965,000)
      Capital expenditures                             (643,942)       (394,161)
      Other, net                                        331,088         262,880
                                                    -----------     -----------
         Net cash provided (used) by
          investing activities                          278,104        (993,023)
                                                    -----------     -----------

Cash flows from financing activities:
     Repayments of notes payable                       (194,437)     (2,383,342)
      Additional borrowings                                --         2,330,000
      Other, net                                           --            34,400
                                                    -----------     -----------
         Net cash provided (used) by
          financing activities                         (194,437)        (18,942)
                                                    -----------     -----------


Net increase (decrease) in cash and
   cash equivalents                                     (36,709)       (250,448)

Cash and cash equivalents at beginning
   of period                                          1,801,670       3,172,661
                                                    -----------     -----------

Cash and cash equivalents at end of period          $ 1,764,961       2,922,213
                                                    ===========     ===========

                                                    (Continued)

See accompanying notes to consolidated condensed financial statements.

                                        6

<PAGE>



                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

           Consolidated Condensed Statements of Cash Flows - Continued
                     Six Months Ended June 30, 1997 and 1996
                                   (Unaudited)



In May 1997, the Company recorded the following  partial cash activity  relating
to the acquisition of The Lodge Keeper Group, Inc.:


      Costs:
        Cash                                       $   825,000
        Common stock issued, net
          of treasury stock acquired                   658,580
        Debt assumed                                 4,784,754
                                                   -----------

                                                   $ 6,268,334
                                                   ===========

      Allocated to:
        Property and equipment                     $ 4,724,329
        Other assets                                 2,893,021
        Working capital deficit                     (1,349,016)
                                                   -----------

                                                   $ 6,268,334
                                                   ===========

















                                        7


<PAGE>

                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

              Notes to Consolidated Condensed Financial Statements
                             June 30, 1997 and 1996
                                   (Unaudited)

      (1)   Basis of Presentation
            ---------------------

            The accompanying  unaudited financial  statements 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
            have been included.  The results of operations  for interim  periods
            are not  necessarily  indicative of the results that may be expected
            for  a  full  year  or  any  other  interim   period.   For  further
            information,  see the consolidated  financial statements included in
            the Company's Form 10-KSB for the year ended December 31, 1996.


      (2)   Business Acquisition
            --------------------

            On May 8, 1997, the Company  completed its  acquisition of The Lodge
            Keeper Group, Inc. of Prospect,  Ohio ("Lodge Keeper"). The purchase
            price totaled  approximately  $6.3 million  consisting  primarily of
            cash of $825,000, 106,320 shares of common stock of the Company, and
            the assumption of  approximately  $4.8 million of debt.  Lodgekeeper
            operates  18  hotels  under  long-term   leases,   holds  management
            contracts on five Country Hearth Inn hotels and owns one independent
            hotel,  among other assets.  The  acquisition has been accounted for
            using the purchase  method and  Lodgekeeper's  results of operations
            are  included  in  the  Company's  financial   statements  from  the
            acquisition date.

            The  following  pro  forma  financial   information  presents  total
            revenue,  net  income,  and net  income per share for the six months
            ended June 30, 1997 and 1996 as if the  acquisition  had occurred at
            the beginning of such periods:

                                                   Six Months ended June 30,

                 Pro forma:                               1997            1996
                 ---------------------              ----------      ----------
                                              
                 Total revenue                    $ 10,481,825      11,355,086
                                                  ============      ==========
                                              
                 Net income                       $  1,353,185         412,322
                                                  ============         =======
                                           

                 Net income per common and
                     common equivalent share           $  .70              .22
                                                          ===              ===

                                        8

<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS.

FINANCIAL CONDITION AND CHANGES IN FINANCIAL CONDITION.
-------------------------------------------------------


1996
----

During the second quarter of 1996, the Company invested  approximately  $250,000
in a joint venture to build a Country  Hearth Inn in Mason,  Ohio.  The property
opened in May 1997. In a separate transaction,  the Company made a $170,000 loan
to a  partnership  which,  in turn,  executed a license  agreement for a Country
Hearth Inn in Canton Township,  Michigan.  The loan proceeds were used for hotel
renovations  and the  Company  also has an option to  acquire up to a 50% equity
interest in the partnership.

Also during the second quarter of 1996, the Company collected $250,000 on a note
receivable  pledged to Trilon  International,  Inc.  ("Trilon").  Those proceeds
along  with  other   collections   reduced  the  net  obligation  to  Trilon  to
approximately  $1 million.  The Trilon  obligation  was fully  satisfied  in the
fourth quarter of 1996.


One of the last remaining "Old Buckhead"  claims was resolved in April 1996. The
settlement released approximately $300,000 of restricted funds to the Company.


1997
----

On May 8, 1997, the Company completed its acquisition of The Lodge Keeper Group,
Inc.  of  Prospect,   Ohio  ("Lodge   Keeper").   The  purchase   price  totaled
approximately  $6.3 million  consisting  primarily of cash of $825,000,  106,320
shares of common stock of the Company,  and the assumption of approximately $4.8
million of debt.  Lodgekeeper  operates 18 hotels under long-term leases,  holds
management  contracts on five Country Hearth Inn hotels and owns one independent
hotel, among other assets.

Approximately  $4.7 million of the purchase  price was allocated to property and
equipment and  approximately  $2.5 million to leasehold  interests.  The Company
also assumed a working capital deficit of approximately $1.3 million.

Lodge  Keeper  will  continue to manage the 24 hotels it  previously  managed in
addition to managing the five properties  previously  managed by the Company and
will manage  properties  to be acquired  by the Company  such as the  previously
reported Hatfield Inns.

At its June 26,  1997  annual  meeting of  shareholders,  the  Company  received
authorization  to issue up to 200,000  shares of  preferred  stock.  The Company
expects to issue $3 million of preferred stock in connection with the previously
reported  Hatfield Inn acquisition.  The transaction is expected to close in the
third  quarter of 1997  although  management  can provide no assurance  that the
transaction will close at that time or at all.


                                        9

<PAGE>


RESULTS OF OPERATIONS
---------------------

Periods ended June 30, 1997 and 1996
------------------------------------

Hotel revenues amounted to $3,426,734 and $5,714,906 for the three month and six
month periods ended June 30, 1997,  respectively,  as opposed to $2,437,680  and
$5,318,444 during the same periods in 1996. Hotel operating profits for the 1997
three and six month periods  amounted to $771,189 and $1,427,101,  respectively,
versus  $540,041 and $1,530,626 in 1996.  Such changes are  attributable  to the
acquisition  of Lodge  Keeper  in May 1997 and the sale of the  Company's  Miami
hotel in December 1996. Also, revenue increases resulted from the Company's 1996
acquisitions of hotels in Atlanta and Dalton, Georgia.

The  properties  presently  owned by the Company  are  subject to a  significant
amount of  seasonal  fluctuation.  Most of the  properties  are  expected  to be
profitable  during the third quarter and will probably not be profitable  during
the fourth quarter.  On an annual basis,  all properties are expected to satisfy
their debt and other cash  obligations in addition to providing the Company with
management and/or franchise fees.

Interest  income  continues  to  decline  as a result of  decreases  in the note
receivable  portfolio  and in funds  available  for  investment.  As  previously
stated, management intends to shift financial resources to other assets, such as
the hotel acquisitions previously discussed.  The first quarter of 1997 includes
approximately  $450,000  resulting from the call of IRB's the Company previously
owned.

Other  income in the  second  quarter  of 1997 and 1996  includes  approximately
$250,000 and $350,000,  respectively,  relating to favorable settlements of "Old
Buckhead"  claims.  Further such gains are not expected.  Both the 1997 and 1996
second quarters include approximately $130,000 of franchise fees, excluding fees
from Company owned properties  which are eliminated.  Most of the resulting 1997
increase is  attributable  to the Lodge  Keeper  acquisition  and  miscellaneous
recoveries.

Other  operating  and  administrative  expenses  in the  second  quarter of 1997
increased  $389,131  versus the same period in 1996. Most of this increase (67%)
resulted from the  acquisition  of Lodge Keeper in May 1997.  Another 28% of the
increase is attributable to personnel  additions to the Company's Country Hearth
Inn franchising operations.

Depreciation  and  interest  expense in the first half of 1997 were reduced as a
result of the previously  discussed Miami hotel sale.  Interest  expense on each
individual debt obligation  generally  decreased as the principal  balances were
reduced.  Interest  expense  associated  with the Orlando  hotel  increased as a
result of the  increased  principal  balance  resulting  from its November  1996
refinancing.  Proceeds  from the  refinancing  were  used to pay off the  Trilon
obligation.  Trilon  interest  expense  in the first  half of 1996  amounted  to
$113,907.  Interest  expense in future  periods will increase as a result of the
openings of the Atlanta  and Dalton  hotels and as a result of the Lodge  Keeper
acquistion.  Most of the Company's  debt  obligations  are fixed rate,  thus the
Company is not susceptible to a large amount of rate risk.


                                       10

<PAGE>

                           PART II - OTHER INFORMATION


ITEM 2.     CHANGES IN SECURITIES

On May 8, 1997, the Registrant  issued 106,320  unregistered  shares of its $.01
par value  common  stock to  accredited  investors.  Such  shares were issued as
partial  consideration  for the  Registrant's  acquisition  of The Lodge  Keeper
Group,  Inc.  ("Lodge  Keeper").  The  recipients  of the shares were the former
shareholders  of Lodge Keeper and the  consideration  received by the Registrant
was  estimated to have a fair market value equal to the fair market value of the
shares issued.

The exemption from  registration  was pursuant to Section 4(2) of the Securities
Act of 1933, as amended.


ITEM 4.         SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The  Company  held its Annual  Meeting of  Shareholders  on June 26,  1997.  The
purpose of the meeting was to consider and vote upon the following matters:

  1.            To elect a Board of  Directors  consisting  of five  persons  to
                serve until the next Annual Meeting of Shareholders.

  2.            To consider a proposal  to amend the  Company's  Certificate  of
                Incorporation  to authorize the issuance of up to 200,000 shares
                of Preferred Stock.

  3.            To consider a proposal to approve the  Company's  1997  Employee
                Stock Option Plan.

  4.            To transact such other business as may have properly come before
                the meeting.

Three of the  Company's  incumbent  directors  (Douglas  C.  Collins,  Robert M.
Miller,  and William K. Stern) were  nominated  for  re-election.  Additionally,
Robert B. Lee and Steven A. Van Dyke were  nominated.  Each of the  nominees was
elected as follows:

                                            Votes For         Votes Withheld
                                            ---------         --------------

      Douglas C. Collins                    1,419,475                  2,061

      Robert M. Miller                      1,418,207                  3,329

      William K. Stern                      1,418,707                  2,829

      Robert B. Lee                         1,419,475                  2,061

      Steven A. Van Dyke                    1,418,207                  3,329


                                       11

<PAGE>

The proposal to amend the Company's  Certificate of  Incorporation  to authorize
the issuance of up to 200,000 shares of Preferred Stock was approved as follows:

                                                        Votes
                                                        -----

             For                                      981,919

             Against                                   73,359

             Abstentions                                5,064

             Broker non-votes                         361,194


The  proposal to approve  the  Company's  1997  Employee  Stock  Option Plan was
approved as follows:


                                                        Votes
                                                        -----

             For                                    1,410,273

             Against                                    5,962

             Abstentions                                5,301


No other matters came before the meeting.



































                                       12


<PAGE>



Item 6.         Exhibits and Reports on Form 8-K

         (a)    Index to Exhibits
                -----------------

         Exhibit        Description
         -------        -----------


         3(i)           Articles of Incorporation  (Previously  filed as Exhibit
                        3(i) to the Registrant's  Registration Statement on Form
                        10-SB which  became  effective  on November 22, 1993 and
                        incorporated herein by reference.)

         3(i)(a)        Certificate    of    Amendment   of    Certificate    of
                        Incorporation(Previously filed as Exhibit 3(i)(a) to the
                        Registrant's   December   31,   1994  Form   10-KSB  and
                        incorporated herein by reference.)

         3(ii)          By-Laws  -  Amended  and  Restated  as of June 27,  1994
                        (Previously  filed as Exhibit 3(ii) to the  Registrant's
                        December 31, 1994 Form 10-KSB and incorporated herein by
                        reference.)

         10(ii)(g)      1997  Employee  Stock Option Plan  (Previously  filed as
                        Annex 1 to the  Registrant's  Definitive Proxy Statement
                        filed with the  Securities  and Exchange  Commission  on
                        June 9, 1997 and incorporated herein by reference.)

         27             Financial Data Schedule (Electronic filing only)



         (b)    Reports on Form 8-K
                -------------------

                On May 22, 1997, the Registrant filed a report on Form 8-K which
                reported the acquisition of The Lodge Keeper Group, Inc.

                On April 25,  May 29,  and June 9, 1997,  the  Registrant  filed
                reports  on Form  8-K for the  purpose  of  filing  consents  of
                independent  auditors  regarding  opinions relating to financial
                statements of Hatfield Inns, LLC.










                                       13


<PAGE>







                                   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.





Buckhead America Corporation
----------------------------
       (Registrant)



Date:    August 13, 1997             /s/Douglas C. Collins
                                     -------------------------------------------
                                     Douglas C. Collins
                                     President and Chief Executive Officer




Date:    August 13, 1997             /s/Robert B. Lee
                                     -------------------------------------------
                                     Robert B. Lee
                                     Vice President and Chief Financial Officer


















                                       14