UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10QSB

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

For the quarterly period ended:       SEPTEMBER 30, 1997
                               ------------------------------------------------

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

For the transition period from _________________________________________________

Commission File Number:            0-23054
                      ----------------------------------------------------------

                      HOSPITALITY WORLDWIDE SERVICES, INC.
                      (formerly Light Savers U.S.A., Inc.)
             (exact name of registrant as specified in its charter)

NEW YORK                                              11-3096379
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)
450 PARK AVENUE, SUITE 2603, NEW YORK, NY                10022
(Address of principle executive offices)              (Zip Code)

                                 (212) 223-0699
              (Registrant's telephone number, including area code)


Check  whether the issuer (1) has filed all reports 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. (X) Yes ( ) No

           APPLICABLE ONLY TO CORPORATE ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
Securities under a plan confirmed by a court. ( ) Yes ( ) No

                       APPLICABLE ONLY TO CORPORATE ISSUER
State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: 11,324,197 as of November 11, 1997.

<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                                TABLE OF CONTENTS


                                                                        PAGE NO.
                                                                        --------

PART I.     FINANCIAL INFORMATION

Item 1.      Financial Statements

             Consolidated Balance Sheets as of September 30, 1997
             and December 31, 1996                                          3

             Consolidated Statements of Operations for the three
             months ended September 30, 1997 and 1996 and nine
             months ended September 30, 1997 and 1996                       4

             Consolidated Statement of Changes in Stockholders'
             Equity for the nine months ended September 30, 1997            5

             Consolidated Statements of Cash Flows for the nine
             months ended September 30, 1997 and 1996                       6

             Notes to Consolidated Financial Statements                     8

Item 2.      Management's Discussion and Analysis
             of Financial Condition and Results of                         10
             Operations

PART II.     OTHER INFORMATION

Item 4       Submission of Matters to a Vote of Security Holders           13

Item 6.      Exhibits and Reports on Form 8-K                              13

Signatures                                                                 14




                                       2
<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT SHARE AMOUNTS)

                                     ASSETS
<TABLE>
<CAPTION>

                                                                                  SEPTEMBER 30,              DECEMBER 31,
                                                                                      1997                       1996
                                                                                -------------------      --------------------
                                                                                  (UNAUDITED)
<S>                                                                            <C>                       <C>              
Current Assets:
  Cash and cash equivalents                                                    $          30,395         $             276
  Accounts receivable, net of allowance for doubtful accounts of
        $261 and $50                                                                      10,955                     3,135
  Current portion of note receivable-related party                                            60                        88
  Costs and estimated earnings in excess of billings on uncompleted
        contracts                                                                          3,192                     2,177
  Advances to vendors                                                                      4,041                         -
  Prepaid and other current assets                                                           991                       421
                                                                                -------------------      --------------------
                  Total current assets                                                    49,634                     6,097


Property and equipment, net                                                                2,480                       143
Goodwill ($17,375) and other intangibles ($1,192), net                                    18,567                     6,050
Notes receivable-related party, less current portion                                         265                       262
Deferred taxes                                                                                40                        65
Other assets                                                                                 730                       133
                                                                                -------------------      --------------------
                                                                                $         71,716         $          12,750
                                                                                ===================      ====================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Loan payable - bank                                                           $              -         $           1,400
  Current portion of notes payable and capital lease obligations                             141                         -
  Accounts payable                                                                         3,389                     1,175
  Accrued and other liabilities                                                            2,853                     1,897
  Billings in excess of costs and estimated earnings on uncompleted
        contracts                                                                            104                       201
  Customer deposits                                                                       11,042                         -
  Income taxes payable                                                                       813                       298
                                                                                ===================      ====================

                  Total current liabilities                                               18,342                     4,971
                                                                                -------------------      --------------------
Notes payable and capital lease obligations, net of current portion                          142                         -

                                                                                -------------------      --------------------
                                                                                          18,484                     4,971
                                                                                -------------------      --------------------
Stockholders' equity:
  Preferred  stock;  3,000,000  shares  authorized,   200,000  shares  of  6%
        redeemable convertible, $25 stated value per share, issued and
        outstanding                                                                        5,000                         -
  Common stock, $.01 par value, 20,000,000 shares authorized,
        11,279,239 and 6,725,655 outstanding                                                 123                        72
  Additional paid-in capital                                                              46,550                     8,186
  Treasury stock                                                                               -                      (715)
  Foreign currency translation adjustment                                                      7                         -
  Retained earnings                                                                        1,552                       236
                                                                                -------------------      --------------------
                  Total stockholders' equity                                              53,232                     7,779
                                                                                -------------------      --------------------
                                                                                $         71,716         $           12,750
                                                                                ===================      ====================

</TABLE>

           See accompanying notes to consolidated financial statements

                                        3


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. and SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (in thousands, except per share data)

                                    Unaudited

<TABLE>
<CAPTION>


                                                               Three Months Ended               Nine Months Ended             
                                                                  September 30,                   September 30,               

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

<S>                                                      <C>             <C>              <C>             <C>                  
Revenues                                                 $      16,532   $        8,240   $      54,240   $       17,657       
                                                         --------------  ---------------  --------------  ---------------      

Cost of revenues                                                11,876            6,252          41,570           13,242       
Selling, general and administrative expenses                     3,348              862           9,608            2,278       
                                                         --------------  ---------------  --------------  ---------------      
                                                                15,224            7,114          51,178           15,520       
                                                         --------------  ---------------  --------------  ---------------      
   Income from operations                                        1,308            1,126           3,062            2,137       
                                                         --------------  ---------------  --------------  ---------------      


Other income (expense):
  Interest expense                                                (164)               -            (420)               -       
  Interest income                                                  148                -             289                -       
                                                         --------------  ---------------    ------------    -------------      
                                                                   (16)               -            (131)               -       
                                                         --------------  ---------------  --------------  ---------------      

   Income before provision for taxes                             1,292            1,126           2,931            2,137       

Provision for income taxes                                         573              303           1,390              575       

                                                         --------------  ---------------    ------------    -------------      
  Income from continuing operations                                719              823           1,541            1,562       

Discontinued operations:

      Income from discontinued operations, less
        applicable taxes of $ 2                                      -                8               -                8
                                                         --------------  ---------------  --------------  ---------------

  Net income                                                       719              831           1,541            1,570

Preferred dividends                                                 75                -             225                -       

                                                         ==============  ===============  ==============  ===============      
Net income applicable to common shareholders             $         644   $          831   $       1,316   $        1,570       
                                                         ==============  ===============  ==============  ===============      

Net income per share                                     $        0.07   $         0.12   $        0.14   $         0.22       
                                                         ==============  ===============  ==============  ===============      


Weighted average number of common and common
   equivalent shares outstanding                                 9,287            7,138           9,166            7,065       
                                                         ==============  ===============  ==============  ===============      

</TABLE>

<PAGE>
              HOSPITALITY WOLDWIDE SERVICES, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
                                 (IN THOUSANDS)
                                    UNAUDITED

<TABLE>
<CAPTION>


                                                                       TREASURY
                                PREFERRED STOCK        COMMON STOCK      STOCK                 
                                ------------------------------------------------             FOREIGN
                                                                                   ADDT'L   CURRENCY                    TOTAL
                                                                                  PAID IN   TRANSLATION   RETAINED   STOCKHOLDERS'
                                 SHARES     VALUE     SHARES    VALUE    VALUE    CAPITAL   ADJUSTMENT    EARNINGS      EQUITY
                                -----------------------------------------------------------------------------------------------

                                             $                  $        $         $           $           $           $

<S>                                <C>     <C>        <C>        <C>   <C>        <C>            <C>      <C>           <C>  
BALANCE, JANUARY 1, 1997             -         -      6,726      72      (715)     8,186          -        236           7,779

Purchase of treasury stock           -         -       (500)      -    (2,210)         -          -          -          (2,210)

Exercise of stock options
    and warrants                     -         -        353       3         -        823          -          -             826

Stock issued in connection 
   with acquisition                200     5,000      1,250      13         -      6,941          -          -          11,954

Stock issued in connection 
    with offering                    -         -      3,450      35     2,925     29,291          -          -          32,251

Foreign currency translation
    adjustment                       -         -          -       -         -          -          7          -               7

Stock options issued for services    -         -          -       -         -         22          -          -              22

Issuance of warrants to joint
     venture partner                 -         -          -       -         -      1,287          -          -           1,287

Net Income                           -         -          -       -         -          -          -      1,541           1,541

Preferred dividends                  -         -          -       -         -          -          -       (225)           (225)
                                ----------------------------------------------------------------------------------------------

BALANCE, SEPTEMBER 30, 1997        200     5,000     11,279     123         -     46,550          7      1,552          53,232
                                ===============================================================================================
</TABLE>


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                    UNAUDITED

<TABLE>
<CAPTION>

                                                                                  NINE MONTHS ENDED
                                                                                      SEPTEMBER 30,
                                                                                    1997        1996      
                                                                            --------------  -----------   
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                         <C>              <C>          
  Net income applicable to common shareholders                              $       1,316    $   1,570    
  Adjustments to reconcile net income to net cash
    used for operating activities:
    Depreciation and amortization                                                     874          344    
    Provision for losses on accounts receivable                                        (4)        (101)   
    Stock options issued for consulting services                                       22            -
    Deferred taxes                                                                     25            -
    Changes in  operating  assets  and  liabilities,  
          exclusive  of  impacts  of purchase acquisition:
      Accounts receivable                                                          (1,688)      (1,692)   
      Current assets of discontinued operations                                         -          145    
      Costs and estimated earnings in excess of billings 
           on uncompleted contracts                                                (1,015)      (1,318)   
      Advances to vendors                                                          (3,486)           -
      Prepaid and other current assets                                               (464)         (30)   
      Accounts payable                                                             (2,406)         317    
      Accrued and other liabilities                                                   441          979    
      Billings in excess of costs and estimated earnings 
           on uncompleted contracts                                                   (97)        (330)   
      Customer deposits                                                             7,765            -    
      Accrued loss on disposal of discontinued operations                               -         (399)
      Income taxes payable                                                            515          438    
    (Increase) decrease in other assets                                              (597)          17    
                                                                            --------------  -----------   
NET CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES                                1,201          (60)   
                                                                                                          
CASH FLOWS FROM INVESTING ACTIVITIES:                                                                     
   Sale of marketable securities                                                        -          715    
   Payments for acquisition, net of acquired cash                                     689            -    
   Purchase of property and equipment                                              (1,379)         (30)   
                                                                            --------------  -----------   
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES                                 (690)         685    

CASH FLOWS FROM FINANCING ACTIVITIES:
  (Payments) borrowings of loan payable - bank                                     (1,400)        (456)   
  Purchase of treasury stock                                                       (2,210)        (438)   
  Sale of treasury stock                                                                -          499    
  Proceeds from stock offering                                                     32,251            -
  Proceeds from issuance of stock options and warrants                                826            -
  (Payments) borrowings on notes payable and capital lease obligations                134
                                                                            --------------  -----------   
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES                               29,601         (394)   
                                                                            --------------  -----------   

EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                 7            -

NET INCREASE (DECREASE)  IN CASH                                                   30,119          231    
CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD                                                                  276          391    
                                                                            --------------  -----------   
CASH AND CASH EQUIVALENTS,
 END OF PERIOD                                                              $      30,395    $     622    
                                                                            ==============  ===========   
</TABLE>


           See accompanying notes to consolidated financial statements
                                         6

<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                    UNAUDITED
<TABLE>
<CAPTION>

                                                                                  NINE MONTHS ENDED
                                                                                     SEPTEMBER 30,
                                                                                 1997           1996
                                                                             -------------  -----------

Cash paid during the period for:
<S>                                                                          <C>            <C>          
    Income Taxes                                                             $      507     $      180   
    Interest                                                                        288              9   

NON-CASH TRANSACTIONS

Issuance of stock for repayment of debt                                      $        -     $       150   
Repayment of debt from issuance of stock                                              -            (150)  

Additional paid in capital for fair value of warrants issued to joint
    venture partner                                                          $    1,287     $         -
Fair value of warrants issued to joint venture partner                           (1,287)              -

</TABLE>


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1997
                                   (UNAUDITED)

NOTES TO FINANCIAL STATEMENTS

NOTE 1:  CONSOLIDATION

The consolidated  financial statements of Hospitality  Worldwide Services,  Inc.
and  Subsidiaries  (the "Company") and related notes thereto as of September 30,
1997 and for the three and nine months ended September 30, 1997 are presented as
unaudited but in the opinion of management include all adjustments  necessary to
present fairly the  information  set forth therein.  These  adjustments  consist
solely of normal recurring accruals.  The consolidated balance sheet information
for December 31, 1996 was derived from the audited financial statements included
in the Company's Form 10-KSB.  These interim financial statements should be read
in  conjunction  with that  report.  The  interim  results  are not  necessarily
indicative of the results for any future period.

NOTE 2:   ACQUISITIONS

On August 1, 1995,  the  Company  acquired  substantially  all of the assets and
business, and assumed certain liabilities, of AGF Interior Services, Inc. (d/b/a
Hospitality  Restoration  and  Builders)  ("AGF"),   through  its  newly  formed
subsidiary corporation,  Hospitality Restoration and Builders, Inc. ("HRB"). HRB
provides interior and exterior  cosmetic  renovation and maintenance for leading
hotel and hospitality customers nationwide. The acquisition was accounted for as
a purchase with the results of HRB included from the acquisition date.

On January 10, 1997, the Company completed the acquisition of The Leonard Parker
Company and affiliates  ("LPC"),  including its then subsidiary,  Parker Reorder
Corporation  ("Parker  Reorder").  LPC, a purchasing company for the hospitality
industry,  acts as an agent  for the  purchase  of goods  and  services  for its
customers  which include major hotel and  management  companies  worldwide.  LPC
purchases  furniture,  fixtures  and  equipment,  kitchen  supplies,  linens and
uniforms,  guestroom  amenities,  and  other  supplies  to meet  its  customers'
requirements  for new hotel  openings  and  major  renovations.  Parker  Reorder
provides  hotel  properties  with the ability to order,  on an as needed  basis,
operating  supplies  and  equipment  ("OS & E")  used  by such  properties.  The
products include china, silverware and guest amenities. The Company is currently
developing a new proprietary  software  product ("Parker  FIRST"),  which allows
clients to reorder  OS & E and other  products  on-line  and will  provide  such
clients with access to  forecasting  and product  evaluation  capabilities.  The
acquisition  was  accounted  for as a  purchase  method of  accounting  with the
results  of LPC  and  Parker  Reorder  included  in the  consolidated  financial
statements of the Company from the acquisition date.

NOTE 3:  NET INCOME PER SHARE

Net income per share of common  stock was computed by dividing the net income by
the  weighted  average  number of common  shares  and common  stock  equivalents
outstanding during the period.

NOTE 4:  PRO FORMA INFORMATION

The following pro forma consolidated  financial information has been prepared to
reflect  the  acquisition  of the  assets  and  business  of LPC.  The pro forma
financial  information  is based on the historical  financial  statements of the
Company  and LPC,  and  should  be read in  conjunction  with  the  accompanying
footnotes.  The accompanying pro forma financial  information is presented as if
the transaction occurred January 1, 1996. The pro forma financial information is
unaudited  and is not  necessarily  indicative  of what the  actual  results  of
operation  of the Company  would have been  assuming  the  transaction  had been
completed as of January 1, 1996, and neither is it necessarily indicative of the
results of operations for future periods.


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1997
                                   (UNAUDITED)

     NINE MONTHS ENDED SEPTEMBER 30,                                 1996
     --------------------------------------------------------------------------
     (amounts in thousands, except share data)                   (unaudited)
     Revenues                                         $                57,629
     Net income applicable to common shares           $                 1,654
     Net income per share                             $                   .20

The above  unaudited  pro forma  statements  have been  adjusted  to reflect the
amortization  of  goodwill,  as  generated  by the  acquisition,  over a 30-year
period,  adjustments to reflect LPC's officer's  employment  agreements  entered
into at date of  acquisition,  dividends of 6% on $5,000,000  preferred  shares,
additional income taxes on LPC's proforma income,  and the issuance of 1,250,000
common shares in the transaction .

NOTE 5:  RECENT DEVELOPMENTS

In May 1997,  the  Company  exercised  an option to purchase  500,000  shares of
common  stock  from  its  former  President  and  Chief  Executive  Officer  for
$2,210,000. The option was part of a reorganization plan adopted on February 26,
1996.

In May 1997,  the  Company  entered  into an  Agreement  to Joint  Venture  ("JV
Agreement")  with Apollo Real Estate Advisors II, L.P.  ("Apollo") and Watermark
Limited LLC ("Watermark LLC"), a major shareholder of the Company,  to identify,
acquire, renovate, refurbish and sell hotel properties. The Company will perform
all of the  renovation  and  procurement  services  for  each of the  properties
purchased by the joint  venture.  In  addition,  the Company will receive a five
percent  equity  interest  in each  of the  entities  formed  to  purchase  such
properties in exchange for its  contribution of five percent of the total equity
required  to  acquire,  renovate  and sell such  properties.  The joint  venture
intends to own and operate the properties only for the time necessary to upgrade
and market them for resale. As an inducement to enter into the JV Agreement, the
Company  issued to Apollo a seven year  warrant to  purchase  750,000  shares of
Common Stock at $8.115 per share.  The warrant  expires in 2004.  The warrant is
currently  exercisable  as to 250,000  shares and becomes  exercisable as to the
remaining 500,000 shares in increments of 100,000 shares for every $7,500,000 of
incremental revenue realized by the Company from the joint venture.

On  September  23, 1997 the Company  completed  a public  offering of  3,450,000
shares of common stock at $10.25 per share (the "Offering"). The net proceeds of
the  Offering,  after  deducting  applicable  issuance  costs and expenses  were
$32,251,000. A portion of the proceeds was used to repay short-term indebtedness
with the  remainder  available  for general  corporate  purposes,  including the
financing of working capital needs and software development.

RECENT ACCOUNTING STANDARDS

In March 1997,  The Financial  Accounting  Standards  Board issued  Statement of
Financial Standards No. 128 ("SFAS No. 128"), "Earnings Per Share." SFAS No. 128
specifies the computation, presentation and disclosure requirements for earnings
per share. SFAS No. 128 is effective for periods ending after December 15, 1997.
The adoption of this statement is not expected to have a material  effect on the
consolidated financial statements.

NOTE 6:  RELATED PARTY TRANSACTIONS

The Company performs  renovation services for Watermark LLC, the Company's major
shareholder.  During the second  quarter of 1997,  the  Company  renegotiated  a
renovation  contract with Watermark to provide for fees more  consistent  with a
project  of  similar  scope and  complexity.  As a result of the  revision,  the
Company  recognized  additional  revenue for the nine months ended September 30,
1997 of  $409,000,  and a job to  date  adjustment  of  $778,000,  resulting  in
additional  gross  margin of  approximately  $780,000  without  an  accompanying
increase in costs for the nine months ended  September 30, 1997. As of September
30, 1997 the Company has no receivables from Watermark LLC.


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

Hospitality Worldwide Services, Inc. (the "Company"),  has evolved over the past
two years from a narrowly  focused lighting  fixture design,  manufacturing  and
installation  company  formerly known as Light Savers U.S.A.,  Inc., into one of
the  leading  providers  of  a  broad  range  of  outsourcing  services  to  the
hospitality industry.  These services include hotel renovation,  procuring hotel
furniture,  fixtures and equipment and reordering  hotel operating  supplies and
equipment.  This rapid  evolution  resulted  from two primary  factors:  (i) the
acquisition of the assets comprising the business of Hospitality Restoration and
Builders,  Inc.  ("HRB")  and the  acquisition  of The  Leonard  Parker  Company
("LPC"),  including its then  subsidiary,  Parker Reorder  Corporation  ("Parker
Reorder") and (ii) the Company's disposition of its lighting business.

From its inception in 1991 to August 1995, the Company's only source of revenues
was its decorative  energy-efficient lighting fixture design,  manufacturing and
installation  business.  The Company acquired its renovation  business in August
1995 and  disposed of its  lighting  business in February  1996.  As part of its
strategy to further its position as one of the leading  providers of  renovation
and  procurement  services for the hospitality  industry on a global basis,  the
Company  acquired its  procurement  and reorder  business in January  1997. As a
result of this  significant  change in the Company's  business focus,  period to
period historical comparisons are not considered meaningful.

Additionally,  historical  comparisons  are not  considered  meaningful  because
revenue  recognition  methodologies  vary across the Company's  businesses.  The
Company  recognizes  all  revenues  associated  with a  renovation  project on a
percentage of completion basis, as if the Company were a general contractor.  As
part of this  process,  the  Company  develops  a  complete  scope of work to be
performed and invoices its clients on a monthly or  bi-monthly  basis as work is
performed.  The Company's cost of renovation services has been relatively stable
over the past two years. In contrast to the Company's  recognition of renovation
revenues,  the Company recognizes procurement revenues in two ways: (i) when the
Company acts as a purchaser and reseller of products, the Company recognizes all
revenues  associated  with the  products it purchases at the time of shipment of
the product or (ii) when the Company  acts as an agent only,  service fee income
is  recognized  as revenue at the time the service is provided.  In either case,
the Company  charges its clients a procurement fee based upon the amount of time
and effort it expects to spend on a project.  The Company intends to continue to
expand its role as a purchaser and reseller because the Company believes that it
can enter into more  advantageous  arrangements  with its vendors when acting as
principal  rather  than  agent.  Under  both  methods  of  procurement   revenue
recognition,  profits primary include only procurement service fees. The Company
realizes  reorder revenues based on the fees it charges its clients for services
rendered.


RESULTS OF OPERATIONS


NINE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1996

Revenues  increased  $36,583,000,  or 207%, to  $54,240,000  for the nine months
ended  September 30, 1997,  compared to  $17,657,000,  for the nine months ended
September  30,  1996,  due in  large  part  to the  acquisition  of  LPC,  which
contributed approximately $38,000,000 to such revenues.

Cost of revenues  increased  $28,328,000,  or 214%, to $41,570,000  for the nine
months ended  September 30, 1997,  compared to  $13,242,000  for the nine months
ended September 30, 1996. This increase resulted  primarily from the acquisition
of LPC, which incurred costs of  approximately  $32,200,000  for the nine months
ended  September 30, 1997.  Cost of revenues as a percentage of revenues for the
nine months ended  September 30, 1997 increased to 76.6%,  compared to 75.0% for
the nine months ended  September 30, 1996.  The cost of renovation  revenues for
the nine months ended  September 30, 1997 decreased to 57.6%,  compared to 75.0%
for the nine months ended


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

September 30, 1996. During the second quarter of 1997, the Company  renegotiated
its renovation  contract with Watermark LLC, a major shareholder of the Company,
to  provide  for fees  more  consistent  with a  project  of  similar  scope and
complexity.  The result was an adjustment  to increase the Company's  renovation
gross margin on the project by  approximately  $780,000  without an accompanying
increase in costs.  Cost of procurement  revenues as a percentage of procurement
revenues has decreased slightly.

Selling, general and administrative expenses for the nine months ended September
30, 1997 increased $7,330,000,  or 322%, to $9,608,000,  compared to $2,278,000,
for the nine months ended September 30, 1996.  Contributing to this increase was
the  acquisition  of the  procurement  and reorder  businesses,  which  incurred
expenses of $6,247,000. These expenses include significant development costs for
the Parker FIRST software.  Additionally,  selling,  general and  administrative
expenses  include $ 685,000 and $ 313,000 of goodwill  amortization for the nine
months ended  September  30, 1997 and 1996,  respectively.  As a  percentage  of
revenues, selling, general and administrative expenses for the nine months ended
September  30,  1997  increased  to 17.7% from 12.9% for the nine  months  ended
September 30, 1996.

Income from operations for the nine months ended September 30, 1997 increased to
$3,062,000,  or 5.6% of revenues,  compared to $2,137,000, or 12.1% of revenues,
for nine months ended  September 30, 1996.  The Company's  procurement  business
contributed  ($270,000)  to income from  operations  for the nine  months  ended
September 30, 1997. The Company's procurement business traditionally has a lower
operating margin than that of its renovation  business as a significant  portion
of its  procurement  revenues  and costs  include  the resale of  furniture  and
fixtures at little or no markup. The Company's  procurement income is the result
of  procurement  fees  charged to its clients  based upon the amount of time and
effort it expects to spend on projects.

The effective  income tax rate for the nine months ended  September 30, 1997 was
47.4%,  compared  to 26.9% for the same period  last year.  The  increase in the
effective  tax rate to 47.4% for the nine  months  ended  September  30, 1997 is
primarily due to the nondeductibility of the amortization of goodwill on the LPC
acquisition, and the benefits of all net operating loss carryforwards previously
recognized.

As a result of the foregoing,  net income applicable to common  shareholders for
the nine months  ended  September  30, 1997 was  $1,316,000,  or $.14 per share,
compared to $1,570,000, or $.22 per share, for the same period last year.

LIQUIDITY AND CAPITAL RESOURCES

The Company's short-term and long-term liquidity  requirements generally consist
of operating capital for its procurement and renovation  businesses and selling,
general and administrative expenses. Historically, the Company has satisfied its
short-long term liquidity  requirements  with cash generated from operations and
periodic  utilization of its lines of credit. Due to the nature of the Company's
business,   with  a  majority  of  its  resources  allocated  to  personnel  for
performance of its services,  capital requirements are insignificant.  There are
substantial capital requirements  necessary to beta test Parker FIRST as well as
anticipated  additional  costs  necessary to sell and market the final  product.
These  future  commitments,  however,  are at the  discretion  of the  Company's
management.  As a result,  the Company can use its  operating  cash and cash and
cash equivalents for operating needs.

Net cash provided by operating  activities  was  $1,201,000  for the nine months
ended  September  30,  1997,  compared  to a use of $ 60,000 for the nine months
ended  September 30, 1996.  During the nine months ended September 30, 1997, the
Company's accounts receivable increased by $7,820,000, resulting from the growth
in  revenue.  This  increase  was  partially  offset by an  increase in accounts
payable  and  accrued  expenses  of  $3,170,000.  Net  cash  used  by  investing
activities was $ 690,000 for the nine months ended September 30, 1997,  compared
to net cash provided by investing


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

activities  of $685,000  for the nine  months  ended  September  30,  1996.  The
positive cash flow for the nine months ended September 30, 1996 is the result of
the sale of marketable  securities.  The 1997  investing  activities  include an
investment  in the  development  of the  Parker  FIRST  software  and  leasehold
improvements  for the Company's  corporate  offices.

In September  1997,  the Company  repaid all  outstanding  borrowings  under its
secured  line of credit  with  Marine  Midland  Bank of New York  ("Bank").  The
Company  is  presently  involved  in  discussions  with  the  Bank to  secure  a
$7,000,000 unsecured line of credit.

In January 1997, the Company  acquired 100% of the outstanding  capital stock of
LPC. The purchase  price for LPC of  approximately  $12.4  million  consisted of
1,250,000  newly  issued  shares  of  Common  Stock  and  200,000  shares  of 6%
redeemable  convertible  preferred,  $25  stated  value  per  share,  which  are
convertible,  on a formula basis, into 1,000,000 shares of Common Stock (subject
to upward  adjustment  to a maximum  of  5,000,000  shares in the event that the
market  price of the  Common  Stock is  below  $5.00 at the time of  conversion)
during the period from January 10, 1998 to January 10, 2000.

In May 1997, the company  borrowed $2.2 million from Findim  Investments S.A. at
an interest  rate of 12% per annum,  in order to exercise its option to purchase
500,000  shares of  Common  Stock  from  Tova  Schwartz,  the  Company's  former
President and Chief Executive  Officer.  This note was paid in full in September
1997.

Since January 1, 1996,  the Company has issued 878,584 shares of Common Stock in
private placements and through the exercise of options and warrants,  raising an
aggregate of 1,385,765.  During such time, the Company  repurchased an aggregate
of 1,500,000 shares of Common Stock from Tova Schwartz for an aggregate purchase
price of $3,175,000.

As the  Company  grows and  continues  to explore  opportunities  for  strategic
alliances and acquisitions,  investment in additional support systems, including
infrastructure and personnel,  will be required. The Company expects to increase
its costs and expenses  over the  remainder of 1997 as it continues to invest in
the  development  of Parker  FIRST.  Although  these  increases  may result in a
short-term  reduction in  operating  margin as a  percentage  of  revenues,  the
Company  anticipates that its  investments,  including the development of Parker
FIRST, will have a positive impact on its net revenues on a long-term basis. The
Company is anticipating  commercial introduction of the Parker FIRST software by
the  first  quarter  of  1998.  The  Company   anticipates   making  substantial
expenditures as it continues to explore expansion though strategic alliances and
acquisitions.  The Apollo  Joint  Venture  has  acquired  the  Warwick  Hotel in
Philadelphia,  Pennsylvania,  has entered  into a letter of intent to purchase a
hotel property in Richmond,  Virginia and has identified four  additional  hotel
properties and is actively negotiating for the acquisitions thereof.

To support the Company's growth, as well as to support potential acquisitions of
hospitality-related  businesses  and the formation of strategic  alliances,  the
Company  completed a public  offering in September 1997. The net proceeds of the
offering,   after  deducting   applicable   issuance  costs  and  expenses  were
$32,251,000. A portion of the proceeds was used to repay short-term indebtedness
with the  remainder  available  for general  corporate  purposes,  including the
financing  of  working  capital  needs and  software  development.  The  Company
believes that its current  cash,  cash  equivalents,  together with the proceeds
from its public offering,  will be sufficient to carry out its business strategy
for the next 18 months.


<PAGE>

              HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

PART II.  OTHER INFORMATION

Item 4    Submission of Matters to a Vote of Securityholders

                  On September 22, 1997,  the Company held its Annual Meeting of
Shareholders  (the "Meeting"),  whereby the shareholders  elected  Directors and
approved  a  proposal  to ratify  the  appointment  of BDO  Seidman,  LLP as the
Company's  independent  auditors for the year ending December 31, 1997. The vote
on such matters was as follows:

1. Election of Directors:

                           NUMBER OF SHARES                   NUMBER OF SHARES
                           OF COMMON STOCK                    OF COMMON STOCK

                                                                  WITHHELD
                                 FOR                             AUTHORITY

Leonard F. Parker              5,281,706                              0

Robert A. Berman               5,281,706                              0

Douglas A. Parker              5,281,706                              0

Louis K. Adler                 5,281,706                              0

George Asch                    5,281,706                              0

Richard A. Bartlett            5,281,706                              0

Scott A. Kaniewski             5,281,706                              0

2.       Ratification  of Appointment of Auditors:  To ratify the appointment of
         BDO  Seidman,  LLP as the  independent  auditors of the Company for the
         year ending December 31, 1997.

                 FOR                 AGAINST                         ABSTAIN

             4,901,340               183,166                         197,200

Item 6.     Exhibits and Reports on Form 8-K

                        (a)   Exhibits
                               27 Financial Data Schedule

                        (b)   Reports on Form 8-K
                                None


<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.




                                HOSPITALITY WORLDWIDE SERVICES,  INC.


                                By:    /S/ ROBERT A. BERMAN
                                   ----------------------------------------
                                     Robert A. Berman
                                     PRESIDENT AND CHIEF EXECUTIVE OFFICER


                               By:    /S/ HOWARD G. ANDERS
                                   -----------------------------------------
                                     HOWARD G. ANDERS
                                     EXECUTIVE VICE PRESIDENT, CHIEF
                                     FINANCIAL OFFICER (PRINCIPAL FINANCIAL
                                     OFFICER, PRINCIPAL ACCOUNT OFFICER) AND
                                     SECRETARY

Dated:  November 13, 1997