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

                                    Form 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

(Mark One)

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

     For the quarterly period ended MARCH 31, 2002

[ ]  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 0-22132


                          BUCKHEAD AMERICA CORPORATION
             (Exact name of registrant as specified in its charter)


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

      7000 CENTRAL PARKWAY, SUITE 850, ATLANTA, GEORGIA            30328
          (Address of principal executive offices)              (Zip Code)


                                 (770) 393-2662
              (Registrant's telephone number, including area code)

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

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.   Yes X    No


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares  outstanding of each of the issuer's  classes
of  common  stock,  as  of  the  latest   practicable   date:   April  30,  2002


           Common stock, par value $.01 - 2,015,885 shares outstanding



<PAGE>




                         PART I - FINANCIAL INFORMATION

                          Item 1. Financial Statements


                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                   Condensed Consolidated Financial Statements

                             March 31, 2002 and 2001

                                   (Unaudited)







                                       2
<PAGE>


                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                      Condensed Consolidated Balance Sheets
                      March 31, 2002 and December 31, 2001
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                               <C>                     <C>

                                                                                     March 31,             December 31,
                                            Assets                                      2002                   2001
                                                                                  ---------------         -------------

  Current assets:
     Cash and cash equivalents, including restricted cash of
      $107,172 at March 31, 2002 and $329,479 at December 31, 2001                  $     361,244         $     625,005
     Investment securities, including restricted securities of
      $171,686 at March 31, 2002 and $168,259 at December 31, 2001                        195,657               190,678
     Accounts receivable, net                                                             888,882             1,013,534
     Current portions of notes receivable, net                                            325,278               676,017
     Property, equipment, and leasehold interests held for sale, net                    4,332,580            10,539,253
     Other current assets                                                                 369,163               289,438
                                                                                    -------------           -----------
                    Total current assets                                                6,472,804            13,333,925

  Noncurrent portions of notes receivable, net                                          3,831,187             3,871,373
  Property, equipment, and leasehold interests held for sale, net                       9,433,361             9,415,229
  Other property and equipment, at cost, net                                              963,640               966,640
  Deferred costs                                                                        1,096,309             1,149,831
                                                                                    -------------           -----------
                                                                                   $   21,797,301         $  28,736,998
                                                                                    =============           ===========

                             Liabilities and Shareholders' Equity

  Current liabilities:
     Accounts payable                                                              $    1,091,489         $   1,250,123
     Accrued expenses                                                                   1,860,027             2,514,933
     Current portions of notes payable                                                 10,173,919            15,227,767
                                                                                    -------------           -----------
                    Total current liabilities                                          13,125,435            18,992,823

  Noncurrent portions of notes payable                                                  9,319,074             9,537,617
  Other liabilities                                                                       286,556               289,551
                                                                                    -------------           -----------
                    Total liabilities                                                  22,731,065            28,819,991
                                                                                    -------------           -----------

  Minority interests                                                                      347,784               587,520

  Shareholders' equity:
     Series B preferred stock; par value $100; 200,000 shares
        authorized; 30,000 shares issued and outstanding                                3,000,000             3,000,000
     Common stock; $.01 par value; 5,000,000 shares authorized;
        2,113,881 shares issued and 2,015,885 outstanding                                  21,139                21,139
     Additional paid-in capital                                                         7,897,530             7,897,530
     (Accumulated deficit) retained earnings                                          (11,512,900)          (10,901,865)
     Treasury stock, 97,996 common shares                                                (687,317)             (687,317)
                                                                                    -------------           -----------
                    Total shareholders' equity                                         (1,281,548)             (670,513)
                                                                                    -------------           -----------

                                                                                   $   21,797,301         $  28,736,998
                                                                                    =============           ===========
</TABLE>

  See accompanying notes to condensed consolidated financial statements.


                                       3
<PAGE>


                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                    Condensed Consolidated Statements of Loss
                   Three Months ended March 31, 2002 and 2001
                                   (Unaudited)

<TABLE>
<CAPTION>
<S>                                                             <C>                  <C>

                                                                       2002                  2001
                                                                --------------       ---------------
  Revenues:
      Hotel revenues                                            $   2,114,660        $    4,276,775
      Franchise fees and other income                                 321,594               340,448
      Investment income                                               119,184               120,489
                                                                  -----------           -----------
              Total revenues                                        2,555,438             4,737,712
                                                                  -----------           -----------
  Expenses:
      Hotel operations                                              1,930,348             3,643,604
      Other operating and administrative                              427,228               523,676
      Leasehold rent                                                  256,979               639,240
      Depreciation and amortization                                    34,500               248,074
      Interest                                                        494,293               810,613
                                                                  -----------           -----------
              Total expenses                                        3,143,348             5,865,207
                                                                  -----------           -----------

              Loss from continuing operations
                 before income taxes                                 (587,910)           (1,127,495)

  Provision for income taxes                                             -                     -
                                                                  -----------           -----------
               Loss from continuing operations                  $    (587,910)       $   (1,127,495)
                                                                  -----------           -----------
  Discontinued operations:
      Loss from operations of hotel management segment                   -                 (255,046)
                                                                  -----------           -----------
              Net loss                                          $    (587,910)       $   (1,382,541)
                                                                  ===========           ===========


  Net loss per common share:
      Basic:
           Continuing operations                                $       (0.33)       $        (0.59)
           Discontinued operations                                       -                    (0.13)
                                                                  -----------           -----------
              Net loss                                          $       (0.33)       $        (0.72)
                                                                  ===========           ===========

      Diluted:
           Continuing operations                                $       (0.33)       $        (0.59)
           Discontinued operations                                       -                    (0.13)
                                                                  -----------           ------------
              Net loss                                          $       (0.33)       $         (0.72)
                                                                  ===========           ============


  Weighted average number of shares used to
     calculate net loss per common share:
      Basic                                                         2,015,885             2,019,033
                                                                  ===========           ===========

      Diluted                                                       2,015,885             2,019,033
                                                                  ===========           ===========

</TABLE>

  See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>


                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows
                   Three Months Ended March 31, 2002 and 2001
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                                  <C>                   <C>

                                                                                             2002                  2001
                                                                                     --------------        --------------
  Cash flows from operating activities:
      Loss from continuing operations                                                $    (587,910)        $  (1,127,495)
      Adjustments to reconcile loss from continuing operations
        to net cash used in continuing operating activities:
         Depreciation and amortization                                                      34,500               248,074
         Minority interest in loss                                                         (52,577)              (96,306)
         Decrease (increase) in accounts receivable                                        124,652              (330,863)
         (Decrease) increase in accounts payable and accrued expenses                     (374,219)              333,297
         Other, net                                                                        (65,677)               57,383
                                                                                      -------------          ------------
              Net cash used in continuing operating activities                            (921,231)             (915,910)
                                                                                      -------------          ------------
      Net cash used in discontinued operations                                            (390,242)             (212,739)
                                                                                      -------------          ------------

              Net cash used in operations                                               (1,311,473)           (1,128,649)
                                                                                      -------------          ------------

  Cash flows from investing activities:
      Principal receipts on notes receivable                                               435,925               392,696
      Originations of notes receivable                                                     (45,000)              (95,000)
      Capital expenditures                                                                 (18,132)              (96,455)
      Proceeds from property and leasehold interest sales, net                           1,171,223               800,782
                                                                                      -------------          ------------
              Net cash provided by investing activities                                  1,544,016             1,002,023
                                                                                      -------------          ------------

  Cash flows from financing activities:
      Repayments of notes payable                                                         (470,147)             (155,033)
      Proceeds from notes payable                                                             -                  240,000
      Distributions to minority interest partners                                           (3,032)              (21,584)
      Other, net                                                                           (23,125)              (38,270)
                                                                                      -------------          ------------
              Net cash (used in) provided by financing activities                         (496,304)               25,113
                                                                                      -------------          ------------

  Net decrease in cash and cash equivalents                                               (263,761)             (101,513)

  Cash and cash equivalents at beginning of period                                         625,005             1,345,671
                                                                                     --------------          ------------

  Cash and cash equivalents at end of period                                         $     361,244         $   1,244,158
                                                                                     ==============          ============

</TABLE>



  See accompanying notes to condensed consolidated financial statements.


                                       5
<PAGE>


                          BUCKHEAD AMERICA CORPORATION
                                AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                             March 31, 2002 and 2001
                                   (Unaudited)

(1)  Basis of Presentation

     The accompanying  unaudited condensed  consolidated 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-K for the year ended December
     31, 2001.

(2)  Comprehensive Loss

     Comprehensive  loss for the three  months ended March 31, 2002 and 2001 was
     $587,910 and $1,406,648, respectively.

(3)  Segment Information

     Condensed  operating  results for each Company segment for the three months
     ended March 31, 2002 and 2001 is presented below:
<TABLE>
<CAPTION>
<S>                                  <C>                  <C>              <C>                <C>                   <C>



                                                                     Three months ended March 31, 2002
       -----------------------------------------------------------------------------------------------------------------------------
                                          Hotel                            Development
                                         Operations       Franchising      & Corporate        Eliminations          Consolidated
                                     ---------------    ---------------  ----------------   ----------------     -------------------
       Revenues                      $   2,114,660           408,950          137,652           (105,824)        $    2,555,438
       Expenses                          1,990,777           208,471          264,152           (105,824)             2,357,576
                                     ---------------    ---------------  ----------------                        -------------------

          EBITDAR*                         123,883           200,479         (126,500)                                  197,862

       Rent                                256,979                                                                      256,979
       Depreciation                              -            31,500            3,000                                    34,500
       Interest                            339,923                 -          154,370                                   494,293
                                     ---------------    ---------------  ----------------                        -------------------

       Income (loss) before
          income taxes               $    (473,019)          168,979         (283,870)                           $     (587,910)
                                     ===============    ===============  ================                        ===================

                                                                     Three months ended March 31, 2001
       -----------------------------------------------------------------------------------------------------------------------------
                                          Hotel                            Development
                                         Operations       Franchising      & Corporate        Eliminations          Consolidated
                                     ---------------    ---------------  ----------------   ----------------     -------------------
       Revenues                      $   4,276,775           505,558          121,195           (165,816)        $    4,737,712
       Expenses                          3,745,009           300,662          287,425           (165,816)             4,167,280
                                     ---------------    ---------------  ----------------                        -------------------

          EBITDAR*                         531,766           204,896         (166,230)                                  570,432

       Rent                                639,240                                                                      639,240
       Depreciation                        210,574            31,500            6,000                                   248,074
       Interest                            646,215                 -          164,398                                   810,613
                                     ---------------    ---------------  ----------------                        -------------------

       Income (loss) before
          income taxes               $    (964,263)          173,396         (336,628)                           $   (1,127,495)
                                     ===============    ===============  ================                        ===================

</TABLE>
     * Earnings before interest, taxes, depreciation, amortization and rent


                                       6
<PAGE>


Item 2. Management's  Discussion and Analysis of Financial Condition and Results
     of Operations.

Material Changes in Financial Condition.

The Company experienced negative cash flow from operations of approximately $1.3
million  during the first  quarter  of 2002,  including  approximately  $390,000
relating to the Company's  discontinued  hotel management  segment.  The Company
also  repaid  approximately  $470,000  of  debt  obligations.  Cash  inflows  of
approximately  $436,000 resulted from principal receipts on notes receivable and
nearly $1.2 million  from the sale of hotel  properties  after the  repayment of
approximately  $4.8 million of related mortgage  obligations The combined effect
of these and other  activities  resulted in a decrease in cash of  approximately
$264,000  from  December 31, 2001.  The Company's  hotel  operations  are highly
seasonal.  Historically, the Company's hotel revenues and operating profits have
been stronger  during the second and third  quarters as opposed to the first and
fourth  quarters.  Management  expects this trend to continue and believes  that
additional  cash will be generated from second and third quarter  operations and
from additional sales of hotel properties.

As of December 31, 2001 the Company had 15 owned or leased properties classified
as held for sale.  Three of these  properties were sold during the first quarter
of 2002 and three others are presently under contract for sale.  Further,  three
long-term  hotel leases were  terminated.  Management is also  evaluating  other
hotel  properties for their  potential for sale and the resulting  impact on the
Company.

The phase-out of the Company's hotel management segment has continued as planned
and management expects completion during the second quarter of 2002.

Liquidity and Capital Resources

The  Company  has  suspended  payment  of  preferred  stock  dividends  and  has
negotiated  deferrals  of certain  note  payable  obligations.  The  Company has
significantly  reduced  personnel  and  implemented a salary  deferral  program.
Certain other overhead costs have been reduced or eliminated. The combination of
these and the previously  discussed actions are expected to reduce the Company's
negative cash flow from operations to an amount which  management  expects could
be funded from continued property sales and other sources.

The Company is presently in default on certain of its note payable  obligations.
Management is presently  conducting  negotiations  with certain of its creditors
regarding the  modification  of repayment  terms. If such  negotiations  are not
successful,  the  Company  will  most  likely  not be  able to  satisfy  all its
obligations as they become due.

Management is also  exploring  sources of liquidity  other than those  described
above, including the sale or financing of some of its other assets. No assurance
can be given that any of the previously described activities will be successful.
These  circumstances  raise  substantial  doubt about the  Company's  ability to
continue as a going concern.

Material Changes in Results of Operations

The decline in hotel revenues is principally  attributable  to the 2001 and 2002
property sales. Same hotel revenues in the aggregate  declined slightly from the
same period in 2001 which continues to reflect the weakened economic  conditions
affecting the  hospitality  industry.  The property  sales and revenue  declines
resulted in reduced earnings before interest, taxes, depreciation,  amortization
and rent  ("EBITDAR")  from the hotel  operations  segment from  $531,766 in the
first quarter of 2001 to $123,883 in the current  quarter.  However,  negotiated
rent   abatements   relating  to  terminated   leases  and  the  elimination  of
depreciation expense relating to properties held for sale resuled in a reduction
of the first quarter hotel operations segment loss of nearly $500,000.

Management expects continued reductions in hotel revenues,  EBITDAR, and segment
losses as additional properties are sold and leases terminated.

Hotel franchising EBITDAR and income before income taxes in the first quarter of
2002  were  comparable  to 2001.  This  resulted  from an  approximate  $100,000
reduction in both revenues and expenses.  The expense  reductions  resulted from
the previously  discussed overall cost reduction plans. A significant portion of
the revenue change is  attributable to a reduction in initial fees which relates
to the  timing  of  sales.  In  addition,  fees from  Company  owned and  leased

                                       7
<PAGE>

properties  decreased  approximately  $60,000.  The  percentage  of  total  fees
generated  from  third  parties  increased  from  67% in  2001  to 74% in  2002.
Management expects this trend to continue.

Net losses of approximately $1.9 million resulting from first quarter 2002 hotel
property sales were charged to previously  established impairment allowances and
therefore had no impact on 2002 net loss. Net losses of  approximately  $506,000
resulting  from  first  quarter  2001  hotel  property  sales  were  charged  to
previously established impairment allowances and therefore had no impact on 2001
net loss.

Corporate EBITDAR loss and net loss before income taxes decreased  approximately
$40,000  and  $50,000,  respectively  from the first  quarter  of 2001.  This is
primarily  attributable  to expense  reductions  which were  offset  somewhat by
increased professional fees. Management expects this may continue.

The Company files income tax returns and recognizes income tax expense (benefit)
on an annual calendar basis.. In the fourth quarter of 2000,  management elected
to establish a valuation allowance for the full amount of the Company's deferred
tax assets. Consequently, no deferred tax benefit has been recognized in 2001 or
2002.


Risk Factors.

This Form 10-Q  contains  forward  looking  statements  that  involve  risks and
uncertainties.  Statements  contained in this Form 10-Q that are not  historical
facts are forward looking statements that are subject to the safe harbor created
by the Private  Securities  Litigation  Reform Act of 1995. The Company's actual
results may differ  significantly  from the results  indicated  by such  forward
looking statements.

The  Company is subject to a number of risks,  including  the  general  risks of
investing in real estate, the illiquidity of real estate,  environmental  risks,
possible  uninsured or under insured  losses,  fluctuations  in property  taxes,
hotel operating  risks,  the impact of  competition,  the difficulty of managing
growth, seasonality, the risks inherent in operating a hotel franchise business,
the risks involved in hotel renovation and construction,  and the uncertainty of
obtaining  additional  financing or extensions of existing credit  facilities as
needed. For a discussion of these and other risk factors,  see the "RISK FACTOR"
section contained in the Company's  Registration Statement on Form S-3 (File No.
333-37691).  Also see  "Liquidity  and  Capital  Resources"  above  and "Item 3.
Quantitative and Qualitative Disclosures About Market Risk."




                                       8
<PAGE>


Item 3. Quantitative and Qualitative Disclosures About Market Risk

As of March 31, 2002, the Company's  obligations included variable rate mortgage
notes and a bank note with  aggregate  principal  balances of  $1,588,946  which
mature at various dates through 2015.  The Company is exposed to the market risk
of  significant  increases in future  interest  rates.  Each  incremental  point
increase  in the prime  interest  rate would  increase  the  Company's  interest
expense by  approximately  $16,000 per year. This risk is somewhat  mitigated in
that  inflationary  increases in interest  rates would  theoretically  result in
increases in average hotel room rates. Also,  significant  increases in interest
rates would have a dampening  effect on additions of  competitive  hotels in the
Company's markets.

At March 31, 2002, the Company's  unrestricted  investment  securities  included
equity  securities  valued at  $23,971.  The Company is exposed to the risk that
such  securities  will become  worthless.  The Company's  restricted  investment
securities also include equity securities.  Such restricted  securities comprise
the assets of the Company's deferred  compensation plan and changes in the value
of such securities have no net impact on the Company's earnings.

The ultimate  collection of the Company's notes receivable is subject to various
credit risks.  Net notes receivable at March 31, 2002 amounted to $4,156,465 and
consisted  of 30 notes,  most of which  were  collateralized  by or  related  to
various hotel assets.  Additionally,  the Company remains contingently liable on
three  mortgage  notes  payable on which the  Company is  guarantor  relating to
properties  sold in 2000 and 2001. The notes' balances at December 31, 2001 were
approximately   $3.7  million  and  the  notes  are  due  in  aggregate  monthly
installments of $34,318 until 2018. The Company also remains contingently liable
for future minimum rental payments totaling  approximately  $1.9 million on sold
leasehold  interests and on subleased and assigned  properties  and equipment in
the  event of  default  by the  purchasers,  sublessees  and/or  assignees.  The
collection of such notes  receivable  and the potential  financial  exposure for
guaranteed note obligations and contingent rents is determined by the ability of
other hotel  operators to satisfy  these  obligations.  Their ability to satisfy
such  obligations  is  subject  to many  risks,  including  economic  conditions
affecting the hotel  industry,  their ability to effectively  manage their hotel
assets, new competition, and other factors.





                                       9
<PAGE>


                           PART II - OTHER INFORMATION

Item 3. Defaults Upon Senior Securities

As of May 14, 2002, a total of $161,875 of Series B preferred  dividends  are in
arrears.

As of May 14, 2002, a total of $193,570 of accrued interest which was previously
due and payable remained unpaid on the Company's convertible debenture notes.


Item 6. Exhibits and Reports on Form 8-K

(a)  Exhibit Index

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

          3(i)      Articles  of  Incorporation.(Incorporated  by  reference  to
                    Exhibit 3(i) to the Registrant's  Registration  Statement on
                    Form 10-SB  (No.0-22132)  which became effective on November
                    22, 1993.)

          3(i)(a)   Certificate of Amendment of  Certificate  of  Incorporation.
                    (Incorporated   by  reference  to  Exhibit  3(i)(a)  to  the
                    Registrant's  Annual  Report on Form  10-KSB  for the fiscal
                    year ended December 31, 1994.)

          3(i)(b)   Certificate of Amendment of  Certificate  of  Incorporation.
                    (Incorporated   by   reference   to  Appendix   "A"  to  the
                    Registrant's  Definitive  Proxy  Statement  filed  with  the
                    Securities and Exchange Commission on June 9, 1997.)

          3(i)(c)   Certificate of Amendment of  Certificate  of  Incorporation.
                    (Incorporated   by   reference   to  Appendix   "A"  to  the
                    Registrant's  Definitive  Proxy  Statement  filed  with  the
                    Securities and Exchange Commission on May 5, 1998.)

          3(ii)     By-Laws  -  Amended  and  Restated  as  of  June  27,  1994.
                    (Incorporated   by  reference   to  Exhibit   3(ii)  to  the
                    Registrant's  Annual  Report on Form  10-KSB  for the fiscal
                    year ended December 31, 1994.)

          4(i)      Certificate of Designation, Preferences and Rights of Series
                    B  Preferred  Stock  of  the  Registrant.  (Incorporated  by
                    reference  to  Exhibit  4(i) to the  Registrant's  Quarterly
                    Report on Form 10-Q for the quarter ended March 31, 2001.)


          11        Statement re: Computation of per share Earnings



(b)  Reports on Form 8-K

     The  Company  has not filed any  reports on Form 8-K during the quarter for
which this report is filed.











                                       10
<PAGE>





                                   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.





                                      Buckhead America Corporation
                                          (Registrant)



     May 15, 2002                     /s/ Douglas C. Collins
-----------------------               --------------------------------
          Date                        Douglas C. Collins
                                      President and Chief Executive Officer



     May 15, 2002                     /s/ Robert  B. Lee
------------------------              ---------------------------------
          Date                        Robert B. Lee
                                      Senior Vice President and
                                      Chief Financial and Accounting Officer














                                       12


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