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:                  June 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: 7,814,739 as of August 18, 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 June 30, 1997
             and December 31, 1996                                           3

             Consolidated Statements of Operations for the three
             months ended June 30, 1997 and 1996 and six
             months ended June 30, 1997 and 1996                             4

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

             Consolidated Statements of Cash Flows for the  six
             months ended June 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 2.      Changes in Securities                                          13

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

Signatures                                                                  14
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT SHARE AMOUNTS)

                                     ASSETS
<TABLE>
<CAPTION>
                                                                                                 June 30,           December 31,
                                                                                                   1997                 1996
                                                                                                ----------            ---------
                                                                                                (UNAUDITED)
<S>                                                                                             <C>                    <C>
Current Assets:                                                                                 
    Cash and cash equivalents                                                                   $  1,435               $    276
    Accounts receivable, net of allowance for doubtful                                                         
          accounts of $357 and $50                                                                11,567                  3,135
    Current portion of note receivable-related party                                                  60                     88
    Costs and estimated earnings in excess of billings                                                         
          on uncompleted contracts                                                                 2,051                  2,177
    Advances to vendors                                                                            2,182                   --
    Prepaid and other current assets                                                                 911                    421
                                                                                                --------               --------
                         Total current assets                                                     18,206                  6,097
                                                                                                               
                                                                                                               
Property and equipment, net                                                                        1,720                    143
Goodwill ($17,731) and other intangibles ($1,255), net                                            18,986                  6,050
Notes receivable-related party, less current portion                                                 265                    262
Deferred taxes                                                                                        40                     65
Other assets                                                                                         242                    133
                                                                                                --------               --------
                                                                                                $ 39,459               $ 12,750
                                                                                                ========               ========
                                                                                                               
                      LIABILITIES AND STOCKHOLDERS' EQUITY                                                     
                                                                                                               
Current Liabilities:                                                                                           
    Loan payable - bank                                                                         $  2,495               $  1,400
    Note payable                                                                                   2,200                   --
    Current portion of notes payable and capital lease obligations                                    60                   --
    Accounts payable                                                                               4,726                  1,175
    Accrued and other liabilities                                                                  2,767                  1,897
    Billings in excess of costs and estimated earnings                                                         
          on uncompleted contracts                                                                   464                    201
    Customer deposits                                                                              6,123                   --
    Income taxes payable                                                                             273                    298
                                                                                                --------               --------
                         Total current liabilities                                                19,108                  4,971
                                                                                                --------               --------
Notes payable and capital lease obligations, net of current portion                                   99                   --
                                                                                                --------               --------
                                                                                                  19,207                  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,                                                
          7,814,739 and 6,725,655 outstanding (1,000,000                                                       
          shares held in treasury)                                                                    88                     72
    Additional paid-in capital                                                                    17,194                  8,186
    Treasury stock                                                                                (2,925)                  (715)
    Foreign currency translation adjustment                                                          (13)                  --
    Retained earnings                                                                                908                    236
                                                                                                --------               --------
                         Total stockholders' equity                                               20,252                  7,779
                                                                                                --------               --------
                                                                                                $ 39,459               $ 12,750
                                                                                                ========               ========
</TABLE>
           See accompanying notes to consolidated financial statements

                                        3
<PAGE>
               HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)

                                    UNAUDITED
<TABLE>
<CAPTION>
                                                            Three Months Ended                     Six Months Ended
                                                                 June 30,                             June 30,

                                                           1997              1996              1997              1996
                                                         --------          --------          --------          --------
<S>                                                      <C>               <C>               <C>               <C>     
Revenues                                                 $ 19,513          $  7,423          $ 37,708          $  9,417
                                                         --------          --------          --------          --------

Cost of revenues                                           14,958             5,313            29,694             6,991
Selling, general and administrative expenses                3,617               979             6,260             1,418
                                                         --------          --------          --------          --------
                                                           18,575             6,292            35,954             8,409
                                                         --------          --------          --------          --------

   Income from operations                                     938             1,131             1,754             1,008
                                                         --------          --------          --------          --------


Other income (expense):
  Interest expense                                           (164)             --                (256)             --
  Interest income                                              78              --                 141                 3
                                                         --------          --------          --------          --------
                                                              (86)             --                (115)                3
                                                         --------          --------          --------          --------

   Income before provision for taxes                          852             1,131             1,639             1,011

Provision for income taxes                                    422               304               817               272

                                                         --------          --------          --------          --------
Net income                                                    430               827               822               739

Preferred dividends                                            75              --                 150              --


                                                         ========          ========          ========          ========
Net income applicable to common shareholders             $    355          $    827          $    672          $    739
                                                         ========          ========          ========          ========

Net income per share                                     $   0.04          $   0.12          $   0.07          $   0.11
                                                         ========          ========          ========          ========



Weighted average number of common and common
   equivalent shares outstanding                            9,179             7,106             9,105             7,028
                                                         ========          ========          ========          ========

</TABLE>

           See accompanying notes to consolidated financial statements

                                         4
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                     FOR THE SIX MONTHS ENDED JUNE 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                      --        --         339          3      --          758      --         --          761

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

Foreign currency translation
    adjustment                        --        --        --         --        --         --         (13)      --          (13)

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

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

Net Income                            --        --        --         --        --         --        --          822        822

Preferred dividends                   --        --        --         --        --         --        --         (150)      (150)
                                     ----------------------------------------------------------------------------------------------

BALANCE, JUNE 30, 1997                 200     5,000     7,815         88    (2,925)    17,194       (13)       908     20,252
                                     ==============================================================================================

</TABLE>

           See accompanying notes to consolidated financial statements
                                        5
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (IN THOUSANDS)
                                    UNAUDITED
<TABLE>
<CAPTION>
                                                                                                                Six Months Ended
                                                                                                                     June 30,
                                                                                                             1997             1996
                                                                                                           -------          --------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                                        <C>              <C>    
  Net income applicable to common shareholders                                                             $   672          $   739
  Adjustments to reconcile net income to net cash
    used for operating activities:
    Depreciation and amortization                                                                              550              233
    Provision for losses on accounts receivable                                                                 92             (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                                                                                   (2,396)          (2,308)
      Current assets of discontinued operations                                                               --                145
      Costs and estimated earnings in excess of billings on uncompleted
           contracts                                                                                           126              (37)
      Advances to vendors                                                                                   (1,627)            --
      Prepaid and other current assets                                                                        (384)              31
      Accounts payable                                                                                      (1,069)             195
      Accrued and other liabilities                                                                            355              529
      Billings in excess of costs and estimated earnings on uncompleted
           contracts                                                                                           263              140
      Customer deposits                                                                                      2,846             --
      Accrued loss on disposal of discontinued operations                                                     --               (399)
      Income taxes payable                                                                                     (25)             272
    (Increase) decrease in other assets                                                                       (109)              17
                                                                                                           -------          -------
NET CASH USED FOR OPERATING ACTIVITIES                                                                        (635)            (543)

CASH FLOWS FROM INVESTING ACTIVITIES:
   Sale of marketable securities                                                                              --                715
   Payments for acquisition, net of acquired cash                                                              689             --
   Purchase of property and equipment                                                                         (714)              (9)
                                                                                                           -------          -------
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES                                                           (25)             706

CASH FLOWS FROM FINANCING ACTIVITIES:
  (Payments) borrowings of loan payable - bank                                                               1,095             (456)
  Purchase of treasury stock                                                                                (2,210)            (438)
  Sale of treasury stock                                                                                      --                499
  Proceeds from borrowings on note payable                                                                   2,200             --
  Proceeds from issuance of stock options and warrants                                                         761             --
  Payments on notes payable and capital lease obligations                                                      (15)            --
                                                                                                           -------          -------
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES                                                         1,831             (394)
                                                                                                           -------          -------

EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                                        (13)            --

NET INCREASE (DECREASE)  IN CASH                                                                             1,159             (231)
CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD                                                                                           276              391
                                                                                                           -------          -------
CASH AND CASH EQUIVALENTS,
 END OF PERIOD                                                                                             $ 1,435          $   160
                                                                                                           =======          =======
</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>
                                                                                                                Six Months Ended
                                                                                                                     June 30,
                                                                                                             1997             1996
                                                                                                           -------          --------

Cash paid during the period for:
<S>                                                                                                      <C>                <C>    
    Income Taxes                                                                                         $   725            $    26
    Interest                                                                                                 148                696

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>


           See accompanying notes to consolidated financial statements
                                        7
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 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 June 30, 1997
and for the three and six months ended June 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 is a
development  stage company that 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,
which  will  be  purchased  via  computer  link.  Parker  Reorder  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.




                                      8
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 1997
                                   (UNAUDITED)

        SIX MONTHS ENDED JUNE 30,                                  1997
        ------------------------------------------------------------------------
        (amounts in thousands, except share data)              (unaudited)
        Revenues                                             $       36,823
        Net income applicable to common shares               $          895
        Net income per share                                 $         0.11

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.

The Company is pursuing a public offering of its  securities.  On July 22, 1997,
the Company  filed a  registration  statement  on Form SB-2 for the  offering of
2,500,000 shares of Common Stock.

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 six months ended June 30, 1997,  the Company  revised a
renovation  contract  with  Watermark in order to adjust the contract to a gross
margin percentage consistent with the Company's high end projects.  The revision
was made due to the  complexity  and length of the  project.  As a result of the
revision,  the Company  recognized  additional  revenue for the six months ended
June 30, 1997 of $409,000,  and a job to date adjustment of $778,000,  resulting
in additional  gross margin of  approximately  $770,000 for the six months ended
June 30, 1997. As of June 30, 1997 the Company has a total receivable balance of
$1,223,000 from Watermark LLC.


                                       9
<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


SIX MONTHS ENDED JUNE 30, 1997 COMPARED TO  SIX MONTHS ENDED JUNE 30, 1996

Revenues  increased  $28,291,000,  or 300.4%,  to $37,708,000 for the six months
ended June 30, 1997,  compared to $9,417,000,  for the six months ended June 30,
1996,  due  in  large  part  to  the  acquisition  of  LPC,  which   contributed
approximately $27,000,000 to such revenues. Revenues for the renovation business
for the six  months  ended June 30,  1997  increased  $1,800,000  due to further
development of its customer base through increased sales and marketing efforts.

Cost of revenues  increased  $22,203,000,  or 324.7%, to $29,694,000 for the six
months ended June 30, 1997, compared to $6,991,000 for the six months ended June
30, 1996.  This increase  resulted  primarily from the acquisition of LPC, which
incurred costs of  approximately  $22,800,000  for the six months ended June 30,
1997. Cost of revenues as a percentage of revenues for the six months ended June
30, 1997 increased to 78.7%, compared to 74.2% for the six months ended June 30,
1996.  The cost of  renovation  revenues  for the six months ended June 30, 1997
decreased to

                                       10
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

64.6%,  compared to 74.2% for the six months ended June 30, 1996. During the six
months ended June 30, 1997,  the Company  amended its  renovation  contract with
Watermark  LLC, a major  shareholder  of the  Company,  to a gross  margin  more
consistent with the Company's other high-end projects, due to the complexity and
length of the project.  The result was an  adjustment  to increase the Company's
renovation  gross  margin on the  project  by  approximately  $770,000.  Cost of
procurement  revenues as a  percentage  of  procurement  revenues  has  remained
relatively unchanged.

Selling,  general and administrative  expenses for the six months ended June 30,
1997 increased $4,842,000, or 341.5%, to $6,260,000, compared to $1,418,000, for
the six months  ended  June 30,  1996.  Contributing  to this  increase  was the
acquisition of the procurement and reorder  businesses,  which incurred expenses
of $4,199,900.  These expenses  include  significant  development  costs for the
Parker  FIRST  software.  Additionally,   selling,  general  and  administrative
expenses  include  $394,000  and $213,000 of goodwill  amortization  for the six
months ended June 30, 1997 and 1996, respectively.  As a percentage of revenues,
selling,  general and administrative  expenses for the six months ended June 30,
1997 increased to 16.6% from 15.1% for the six months ended June 30, 1996.

Income  from  operations  for the six months  ended June 30, 1997  increased  to
$1,754,000,  or 4.7% of revenues,  compared to $1,008,000, or 10.7% of revenues,
for  six  months  ended  June  30,  1996.  The  Company's  procurement  business
contributed $385,000 to income from operations for the six months ended June 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 six months ended June 30, 1997 was 49.8%,
compared to 26.9% for the same period last year.  The increase in the  effective
tax rate to 49.8% for the six months ended June 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 sixmonths ended June 30, 1997 was $672,000,  or $.07 per share,  compared to
$739,000, or $.11 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 available
credit facilities for operating needs.

Net cash used for  operating  activities  was  $635,000 for the six months ended
June 30,  1997,  compared to $543,000  for the six months  ended June 30,  1996.
During the six months ended June 30, 1997,  the  Company's  accounts  receivable
increased by $2,396,000, resulting from the growth in revenue. This increase was
partially  offset by an  increase in  accounts  payable and accrued  expenses of
$714,000.  The Company  started a significant  number of renovation  projects in
June 1997, resulting in significant month end billings that the Company believes
will be collected  during the third quarter of 1997.  Net cash used by investing
activities decreased $25,000 for the six months ended June 30, 1997,



                                       11
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

compared to net cash  provided by investing  activities  of $706,000 for the six
months ended June 30, 1996. The positive cash flow for the six months ended June
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 of $516,000.

As of June 30, 1997 the Company  had drawn  $2,295,000  under its line of credit
(the "Line of Credit") with Marine Midland Bank of New York ("Marine"). The Line
of Credit  matures on September  30, 1997 and bears  interest at Marine's  prime
lending  rate plus .5% and is  secured  by all of the  Company's  assets  and is
guaranteed  by HRB.  The  Company  increased  the Line of Credit to  $2,500,000.
Proceeds from the Line of Credit are used to fund short-term cash  requirements.
The Company  also has  available  through LPC a  $1,000,000  line of credit with
United  Nations Bank (the "LPC Line of Credit"),  which bears interest at a rate
of prime plus .25%,  and is secured by accounts  receivable  of LPC.  There were
borrowings of $200,000 under the LPC Line of Credit as of June 30, 1997.

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. for
a period of six  months,  which bears  interest  at a 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.

Since January 1, 1996,  the Company has issued 864,084 shares of Common Stock in
private placements and through the exercise of options and warrants,  raising an
aggregate of $1,333,565.  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.

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 is currently pursuing a public offering.  There can be no assurance that
the  Company  will be able to sell  all or any of its  stock  through  a  public
offering.  Although the Company believes that its current cash, cash equivalents
and lines of credit,  together with the proceeds from its public offering,  will
be sufficient to carry out its business  strategy for the nest 18 months, if the
Company  does not obtain the funds  required  to meet  these  requirements,  the
Company's  expansion  plans would have to be scaled back or terminated,  and the
ongoing operations of the Company could be materially adversely affected.




                                       12
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES INC., AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

PART II.  OTHER INFORMATION

Item 2.     Changes in Securities



In May 1997,  the  Company  granted to Apollo a seven year  warrant to  purchase
750,000  shares of Common  Stock at $8.115 per share.  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  revenues  realized by the  Company  from its  participation  in the
Apollo Joint Venture.



Item 6.     Exhibits and Reports on Form 8-K

                 (a)   Exhibits
                       27 Financial Data Schedule

                 (b)   Reports on Form 8-K
                       None





                                       13
<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 accounting officer) and
                                     Secretary

Dated:  August 19, 1997