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


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

For the quarterly period ended:  MARCH 31, 1998

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

For the transition period from _______________ to _____________

Commission File Number: 0-23054

                      HOSPITALITY WORLDWIDE SERVICES, 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 principal executive offices)                  (Zip Code)

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


Check whether the registrant (1) has filed all reports to be filed by section 13
or 15(d) of the  Securities  Exchange Act of 1934 during the preceding 12 months
(or for such  shorter  period  that the  registrant  was  required  to file such
reports),  and (2) has been subject to such filing  requirements for the past 90
days.

                                                                  (X) Yes ( ) No

                       APPLICABLE ONLY TO CORPORATE ISSUER
State the number of shares outstanding of each of the issuer's classes of common
stock as of the latest practicable date: 11,880,522 as of May 13, 1998.



<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 March 31, 1998
          and December 31, 1997..........................................3

          Consolidated Statements of Operations for the three
          months ended March 31, 1998 and 1997...........................4

          Consolidated Statement of Changes in Stockholders'
          Equity for the three months ended March 31, 1998...............5

          Consolidated Statements of Cash Flows for the three
          months ended March 31, 1998 and 1997 ........................6-7

          Notes to Consolidated Financial Statements .................8-11

Item 2.   Management's Discussion and Analysis
          of Financial Condition and Results of
          Operations.................................................12-14

PART II.  OTHER INFORMATION

Item 2.   Changes in Securities ........................................15

Item 6.   Exhibits and Reports on Form 8-K...........................15-16

Signatures..............................................................17

SAFE  HARBOR FOR  FORWARD-LOOKING  STATEMENTS  UNDER THE  SECURITIES  LITIGATION
REFORM ACT OF 1995.

Except for  historical  information  contained  herein,  the Report on Form 10-Q
contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 which involve certain risks and uncertainties. The
Company's   actual  results  or  outcomes  may  differ   materially  from  those
anticipated.  In assessing forward-looking  statements contained herein, readers
are urged to carefully  read those  statements.  When used in the Report on Form
10-Q,  the words  "estimate,"  "anticipate,"  "expect,"  "believe"  and  similar
expressions are intended to identify forward-looking statements.


                                       2
<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. and SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      (in thousands, except share amounts)

                                     ASSETS

                                                    March 31,      December 31,
                                                      1998            1997
                                                   ----------      ------------
                                                    Unaudited
CURRENT ASSETS:
   Cash and cash equivalents                          $9,407        $11,964
   Marketable securities                               4,970         18,916
   Accounts receivable, less allowance for 
   doubtful accounts of $365 and $268                 31,608         21,933
   Current portion of note receivable                     --            342
   Costs and estimated earnings in 
     excess of billings                                7,791          3,421
   Advances to vendors                                 3,803          4,255
   Prepaid and other current assets                    4,862          1,037
                                                     -------        -------
            Total current assets                      62,441         61,868
                                                     -------        -------
   Property and equipment, less accumulated 
     depreciation of $490 and $338                     7,343          3,548
   Goodwill and other intangibles, less 
     accumulated amortization of $1,755 and
     $1,490                                           25,674         17,078
   Deferred taxes                                      1,089            739
   Other assets                                        1,347          1,035
                                                     -------        -------
            Total other assets                        35,453         22,400
                                                     -------        -------
                                                     $97,894        $84,268
                                                     =======        =======

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
   Current portion of notes payable and 
     capital lease obligations                       $   679        $    --
   Accounts payable                                   20,582         16,374
   Accrued and other liabilities                       3,515          2,540
   Billings in excess of costs and     
     estimated earnings                                  148            296
   Customer deposits                                   9,735         13,324
   Income taxes payable                                  688              8
                                                     -------        -------
            Total current liabilities                 35,347         32,542
   Notes payable and capital lease 
     obligations, net of current portion               3,471             --
                                                     -------        -------
            Total liabilities                         38,818         32,542
                                                     -------        -------

STOCKHOLDERS' EQUITY:
   Convertible  preferred  stock,$.01  par 
     value,  $25 stated  value,  3,000,000
     shares authorized, 200,000 issued 
     and outstanding,  $5,000,000 
     liquidation preference                            5,000          5,000
   Common stock, $.01 par value,  
     20,000,000 shares  authorized,  
     11,868,022 and 11,345,572 shares 
     issued and outstanding                              119            113
   Additional paid-in capital                         53,721         47,520
   Retained earnings (deficit)                           236           (907)
                                                     -------        -------
            Total stockholders' equity                59,076         51,726
                                                     -------        -------
                                                     $97,894        $84,268
                                                     =======        =======

The accompanying notes to consolidated financial statements are an integral part
of these statements.

                                       3
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                    (in thousands, except per share amounts)
                                    Unaudited


                                                    Three Months Ended March 31,
                                                           1998         1997
                                                           ----         ----

Net revenues                                             $ 41,290    $ 18,196

Cost of revenues                                           33,898      14,737
                                                           ------      ------

    Gross profit                                            7,392       3,459

Selling, general and administrative expenses                5,489       2,644
                                                           ------      ------

       Income from operations                               1,903         815
                                                           ------      ------

Other income (expense):
      Interest income                                         364           6
      Interest expense                                       (145)        (35)
                                                           ------      ------
                                                              219         (29)
                                                           ------      ------
      Income before provision for income taxes              2,122         786

Provision for income taxes                                    904         389
                                                           ------      ------

   Net income                                            $  1,218    $    397
                                                           ======      ======

Basic earnings per common share                          $   0.10    $   0.04
                                                           ======      ======

Diluted earnings per common share                        $   0.09    $   0.04
                                                           ======      ======

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                 11,820       7,845
                                                           ======       =====

WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT
   SHARES OUTSTANDING                                      13,977       9,684
                                                           ======       =====

The accompanying notes to consolidated financial statements are an integral part
of these statements.

                                       4
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE THREE MONTHS ENDED MARCH 31, 1998
                                 (in thousands)
                                    Unaudited


<TABLE>
<CAPTION>
                                                  Preferred Stock         Common Stock
                                               ------------------------------------------
                                                                          Number                 Addt'l     Retained      Total 
                                                Number of   Stated          of        Par        Paid In    Earnings   Stockholders'
                                                 Shares      Value        Shares     Value       Capital   (Deficit)      Equity
                                                 ------      -----        ------     -----       -------   ---------      ------

<S>                                                <C>     <C>           <C>        <C>         <C>          <C>          <C>     
BALANCE, JANUARY 1, 1998                           200     $  5,000      11,346     $    113    $ 47,520     $   (907)    $ 51,726
                                                                                                                        
Exercise of stock options and warrants            --           --             8         --            35         --             35
                                                                                                                        
Stock issued in connection with acquisition       --           --           514            6       6,166         --          6,172
                                                                                                                        
Net income                                        --           --          --           --          --          1,218        1,218
                                                                                                                        
Preferred dividends                               --           --          --           --          --            (75)         (75)
                                              ------------------------------------------------------------------------------------
                                                                                                                        
Balance, March 31, 1998                            200     $  5,000      11,868     $    119    $ 53,721     $    236     $ 59,076
                                              ====================================================================================
</TABLE>


The accompanying to consolidated financial statements notes are an integral part
of these statements.

                                       5
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                    Unaudited

<TABLE>
<CAPTION>
                                                                                Three Months ended
                                                                                     March 31,
                                                                          1998                  1997
                                                                          ----                  ----

<S>                                                                   <C>                     <C>     
CASH FLOWS FROM OPERATING ACTIVITES:
   Net income                                                         $  1,218                $    397
Adjustments to reconcile net income to
  net cash used in operating activities:
   Depreciation and amortization                                           416                     263
   Stock based compensation charge                                         122                    --
   Deferred income tax benefit                                            (350)                   --
(Increase) decrease in current assets:
   Accounts receivable                                                  (6,513)                 (2,506)
   Notes receivable                                                        342                    --
   Costs in excess of billings                                          (4,370)                    (57)
   Advances to vendors                                                     452                    (190)
   Prepaid and other current assets                                       (448)                   (159)
(Increase) in other assets                                                (236)                    (82)
Increase (decrease) in current liabilities:
   Accounts payable                                                      2,661                     409
   Accrued and other liabilities                                           (13)                   (107)
   Billings in excess of costs                                            (148)                    323
   Customer deposits                                                    (3,589)                     74
   Income taxes payable                                                    680                      42
                                                                      --------                --------
NET CASH USED IN OPERATING ACTIVITIES                                   (9,776)                 (1,593)

CASH FLOWS FROM INVESTING ACTIVITIES:
   Sale of short term marketable securities                             13,946                    --
   Purchase price of subsidiary                                         (1,500)                   --
   Investment in ING Joint Venture                                      (3,263)                   --
   Cash acquired, upon acquisition,
     net of acquisition costs                                              (62)                    689
   Purchase of property and equipment                                   (1,150)                   (211)
                                                                      --------                --------
NET CASH PROVIDED BY INVESTING ACTIVITIES                                7,971                     478

CASH FLOWS FROM FINANCING ACTIVITIES:
   Repayment of loan payable                                            (6,300)                    700
   Proceeds from borrowings on loan payable                              6,300                      59
   Repayment of notes payable and capital
     lease obligations                                                    (787)                    (14)
   Proceeds from exercise of stock options
     and warrants                                                           35                     757
                                                                      --------                --------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                       (752)                  1,502


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                    (2,557)                    387
                                                                      --------                --------
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                          11,964                     276
                                                                      --------                --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                              $  9,407                $    663
                                                                      ========                ========
</TABLE>

                                       6
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                    Unaudited

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid during the period for:
      Income taxes                                         $   201       $   307
      Interest                                             $   152       $    35
NON-CASH INVESTING & FINANCING ACTIVITIES:
Fair value (including goodwill) of net
     assets acquired                                       $ 6,232       $11,166
Stock issued for assets acquired                           $ 6,172       $11,953

The accompanying notes to consolidated financial statements are an integral part
of these statements.

                                       7
<PAGE>
              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1998
                                   (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: CONSOLIDATION

The consolidated  financial statements of Hospitality  Worldwide Services,  Inc.
and Subsidiaries  (the "Company") and related notes thereto as of March 31, 1998
and for the  three  months  ended  March  31,  1998 and 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   adjustments.   The  consolidated  balance  sheet
information  for  December  31, 1997 was derived  from the audited  consolidated
financial  statements  included  in  the  Company's  Form  10-K.  These  interim
consolidated  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

In January 1997, the Company completed the acquisition of Leonard Parker Company
("LPC")  and  Parker  Reorder  Corporation  ("Parker  Reorder").  LPC, a leading
purchasing company for the hospitality  industry,  acts as an agent or principal
for the purchase of goods and services for its  customers  which  include  major
hotel and management  companies  worldwide.  Parker Reorder has developed and is
marketing a new proprietary software product, Parker FIRST, which allows clients
to reorder operating  supplies and equipment ("OS&E") and other products on-line
and will provide such clients with access to forecasting and product  evaluation
capabilities.  The  purchase  price  of LPC  and  Parker  Reorder,  after  final
adjustments,   was  approximately   $11,650,000  which  consisted  primarily  of
1,250,000  newly issued  shares of Common  Stock and $5 million  stated value of
newly issued 6% convertible  preferred stock of the Company,  convertible,  on a
formula basis,  into not less 1,000,000 shares and no more than 4,000,000 shares
of common stock $.01 par value per share (the "Common  Stock"),  (at the present
stock price) from January 1, 1998 to January 10, 2000. The acquisition  resulted
in  goodwill  of  approximately  $11,400,000,  which  is  being  amortized  on a
straight-line  basis over its estimated useful life of 30 years. The acquisition
was  accounted  for as a purchase  with the  results  of LPC and Parker  Reorder
included  in the  consolidated  financial  statements  of the  Company  from the
acquisition date.

On January 9, 1998, the Company completed the acquisition of Bekins Distribution
Services, Inc. ("Bekins"), a leading provider of transportation, warehousing and
installation  services  to a variety of  customers  worldwide.  Founded in 1969,
Bekins is a logistical  services  company  that serves  clients who are opening,
renovating  or  relocating  facilities  by assuring  that  materials,  fixtures,
furniture  and  merchandise  are moved from multiple  vendor  locations to their
ultimate  destinations in a controlled orderly sequence so that each item can be
installed on schedule. The purchase price of Bekins of approximately $11,000,000
consisted  of  514,117  shares of Common  Stock and the  assumption  of  certain
Bekins' debt. The purchase agreement contains a make-whole  adjustment  whereby,
on a  formula-basis,  additional  shares will be transferred if the price of the
Company's common stock for the 20 days prior to the one year anniversary date is
less than 85% of the share price on the date of acquisition. The acquisition was
accounted  for  as a  purchase  with  the  results  of  Bekins  included  in the
consolidated financial statements of the Company from the acquisition date.

                                       8
<PAGE>

On  February  9, 1998,  the  Company  purchased  the  assets of the real  estate
advisory  business from  Watermark  Limited,  LLC, an  international  management
company  that is the  general  partner  and  manages  Watertone  Holdings  LP, a
shareholder of the Company. The resulting wholly owned subsidiary of the Company
is named HWS Real Estate Advisory Group,  Inc. ("HWS REAG").  The purchase price
of HWS REAG was  $1,500,000  and their results are included in the  consolidated
financial statements of the Company from the acquisition date.

On March 6, 1998, in  conjunction  with a joint  venture  formed with ING Realty
Partners ("ING Joint  Venture"),  the Company acquired the Clarion Quality Hotel
in Chicago, Illinois. A wholly-owned subsidiary of the Company will renovate and
refurbish this property pursuant to a contract with the ING Joint Venture, which
is expected to generate  approximately $17 million of revenue for the Company in
1998.

NOTE 3: EARNINGS PER SHARE OF COMMON STOCK

In 1997, the Company adopted SFAS No. 128,  "Earnings Per Share," which replaced
the  calculation of primary and fully diluted  earnings per share with basic and
diluted earnings per share.  Unlike primary  earnings per share,  basic earnings
per share  excludes any dilutive  effects of options,  warrants and  convertible
securities.  Diluted  earnings  per share  are very  similar  to the  previously
reported  fully diluted  earnings per share.  All earnings per share amounts for
prior periods have been restated to conform to the new requirements.

Basic  earnings  per common share are based on net income less  preferred  stock
dividends  divided by the weighted average number of common shares  outstanding.
Diluted earnings per common share are adjusted to reflect the assumed conversion
of  convertible  preferred  stock and the  elimination  of the  preferred  stock
dividends,  if such conversion is dilutive,  and the weighted  average number of
common share equivalents from stock options and warrants.

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 Bekins.  The pro forma
financial  information  is based on the historical  financial  statements of the
Company  and Bekins,  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, 1997. 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, 1997, and neither is it necessarily indicative of the
results of operations for future periods.

                                       9
<PAGE>

              HOSPITALITY WORLDWIDE SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1998
                                   (Unaudited)

                                                              Three Months Ended
                                                                 March 31, 1997
       -------------------------------------------------------------------------
       (amounts in thousands, except share data)                  (Unaudited)
       Net Revenues                                                $ 23,753
       Net income                                                  $    513
       Basic earnings per common share                             $    .06

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,
additional income taxes on pro forma income and the 514,117 common shares issued
as  consideration  in the  transaction.  In  addition,  adjustments  to  reflect
historical  compensation  per  employment  agreements  entered  into  at date of
acquisition have also been included.

NOTE 5:     RECENT DEVELOPMENTS

On January 6, 1998, the Company  reached an agreement in principle to enter into
a master development agreement with Prime Hospitality Corp. ("Prime") to develop
twenty hotel properties over a two-year period under the AmeriSuites brand name.
Under the proposed agreement,  the Company will provide the site identification,
development,  construction and purchasing services required for each project and
Prime will provide  project design and  management  and franchise  services once
each property is complete. The Company and Prime will be equally responsible for
the  financing  requirements  (up to $30 million  each) and will each have a 50%
interest in the new hotels.

NOTE 6:     COMPREHENSIVE INCOME

In July 1997, the Financial  Accounting  Standards  Board (FASB) issued SFAS No.
130, "Reporting  Comprehensive Income." This statement establishes standards for
reporting and display of  comprehensive  income and its components in a separate
financial  statement.  Comprehensive  income  generally  includes  net income as
reported by the Company adjusted for cumulative foreign translation  adjustments
and   unrealized   gains  and   losses  on   marketable   securities   that  are
available-for-sale,  which are currently  reported in the  stockholders'  equity
section of the balance  sheet.  The  statement  is  effective  for fiscal  years
beginning  after  December 15, 1997. The Company has adopted the standard at the
beginning  of  1998.  The  differences   between  net  income  as  reported  and
comprehensive income is immaterial for the three months ended March 31, 1998 and
1997.

NOTE 7:     DISCLOSURE ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

In June 1997,  the FASB issued SFAS No. 131,  "Disclosure  about  Segments of an
Enterprise and Related  Information."  This statement  requires that the Company
report  financial and  descriptive  information  about its reportable  operating
segments in financial  statements  issued to shareholders for interim and annual
periods. The Statement also establishes  standards for related disclosures about
products  and  services,  geographic  areas  and  major  customers.  Under  this
Statement,  operating  segments  are  components  of an  enterprise  about which
separate financial  information is available that is regularly  evaluated by the
enterprise's  chief  operational  decision-maker  in  deciding  how to  allocate
resources and in assessing  performance.  This statement is effective for fiscal
years  beginning  after December 15, 1997. The Company will conform with the new
standard as of December 31, 1998.


                                       10
<PAGE>
NOTE 8:     YEAR 2000

In July 1996,  the  Emerging  Issues Task Force  reached a  consensus,  on Issue
96-14, "Accounting for the Costs Associated with Modifying Computer Software for
the Year 2000," which requires that costs  associated  with  modifying  computer
software for the year 2000 be expensed as incurred. Management has evaluated the
impact of Year 2000 issues on the Company's business and operations. The Company
believes,  based  upon its  internal  reviews  and other  factors,  that  future
external  and  internal  costs to be incurred  relating to the  modification  of
internal-use  software for the year 2000 will not have a material  effect on the
Company's results of operations or financial position.

NOTE 9:     EARNINGS PER SHARE

The following table  reconciles the components of basic and diluted earnings per
common share for the three months ended March 31, 1998 and 1997.

                                                        Three Months Ended
                                                             March 31,
                                                        1998          1997
                                                        ----          ----
Numerator:
  Net income                                       $  1,218,000    $    397,000
  Preferred stock dividends                             (75,000)        (75,000)
                                                   ------------    ------------
  Basic earnings per common share -
     Net income available to common stockholders      1,143,000         322,000
  Effect of dilutive securities
     Preferred stock dividends                           75,000          75,000
                                                   ------------    ------------
  Diluted earnings per common share -
     Net income available to common stockholders   $  1,218,000    $    397,000

Denominator:
  Basic earnings per common share -
     Weighted average common shares outstanding      11,820,000       7,845,000
  Effect of dilutive securities
     Stock-based compensation plans                   1,157,000         839,000
     Preferred stock                                  1,000,000       1,000,000
                                                   ------------    ------------
  Diluted earnings per common share -
     Weighted average common and
     common equivalent shares outstanding            13,977,000       9,684,000


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

DESCRIPTION OF BUSINESS/OVERVIEW

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 services for
the hospitality industry on a global basis, the Company acquired its procurement
and reorder  businesses in January 1997,  its  transportation,  warehousing  and
installation  business in January 1998 and its real estate advisory  business in
February 1998. 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,  transportation,
warehousing or installation project on a percentage of completion basis. 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 services  has been  relatively  stable over the past two
years. In contrast to the Company's  recognition of renovation,  transportation,
warehousing  or  installation   revenues,  the  Company  recognizes  procurement
revenues in three ways:  (i) when the Company is a  principal,  during  which it
functions 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 respective product, (ii) when the Company acts as an agent only, service fee
income is  recognized  as revenue at the time the service is provided  and (iii)
when the Company provides these services under long-term contracts, earnings are
recognized under the percentage of completion method,  based on efforts expended
over the life of the contract.  In each 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
each method of procurement revenue  recognition,  profits primarily include only
procurement  service fees. The Company realizes reorder and real estate advisory
revenue based on the fees it charges its clients for services rendered.

RESULTS OF OPERATIONS:  THREE MONTHS ENDED MARCH 31, 1998 vs. THREE MONTHS ENDED
MARCH 31, 1997.

The  Company  experienced  a  significant   increase  in  its  net  revenues  to
$41,290,000  for  the  three  months  ended  March  31,  1998 in  comparison  to
$18,196,000  for the three  months  ended March 31,  1997,  due in large part to
increased  revenues for the renovation  and  procurement  businesses  which have
increased  over  last  year due to  continued  growth  in their  customer  base,
attributed  to  increased   sales  and  marketing   efforts,   and  the  further
establishment  of the Company's name in the hospitality  industry.  In addition,
the  acquisitions  of  Bekins  and  HWS  REAG  have  contributed   approximately
$6,100,000 to such revenues.

Cost of revenues  for the three  months  ended March 31, 1998 were  $33,898,000,
compared to  $14,737,000  for the same period  last year.  This  increase is due
mainly  to the  additions  of  Bekins  and HWS  REAG,  which  incurred  costs of
approximately  $4,500,000  for the three  months  ended  March 31,  1998 and the
result of revenue  growth.  Gross profit,  as a percent of 

                                       12
<PAGE>

revenue was 17.9% for the three months ended March 31, 1998 as compared to 19.0%
for the same period last year.

Selling, general and administrative expenses for the period ended March 31, 1998
have  increased to  $5,489,000,  compared to $2,644,000 for the same period last
year. Contributing to this increase are the acquisitions of Bekins and HWS REAG,
which  incurred  expenses of  approximately  $1,000,000 and an investment in the
infrastructure  of the  Company to support  the  revenue  growth.  Additionally,
selling,  general and  administrative  expenses include $262,000 and $197,000 of
goodwill   amortization   for  the  periods  ended  March  31,  1998  and  1997,
respectively.   As  a  percentage   of  net  revenues,   selling,   general  and
administrative expenses for the three months ended March 31, 1998 have decreased
to 13.3% from 14.5% for the same period last year.  This reduction is the result
of greater economies of scale provided by growth and the acquisitions.

Interest  income  increased  from $6,000 to $364,000 in the three  months  ended
March 31, 1998 due to the investment of the proceeds received from the Company's
public  offering in  September  1997.  Interest  expense  increased in the three
months  ended March 31, 1998 as compared to the same period last year due to the
acquisition of Bekins which carries approximately $4,000,000 of long-term debt.

The  provision  for income  taxes for the three  months ended March 31, 1998 was
$904,000,  compared to $389,000 for the three  months ended March 31, 1997.  The
increase in the  provision  for income taxes was primarily due to an increase in
income before income taxes.

As a result of the above, net income for the three-month  period ended March 31,
1998 was $1,218,000  compared to net income of $397,000 for the same period last
year.


                                       13

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

LIQUIDITY AND CAPITAL RESOURCES

In March 1998,  the Company  obtained a new unsecured line of credit with Marine
Midland  Bank of New York,  which  provides  the Company a maximum  borrowing of
$7,000,000.  Borrowings  under the line of credit  bear  interest  at the bank's
prime lending rate.  Proceeds from the borrowing are utilized to fund short-term
cash requirements. At March 31, 1998, there were no outstanding borrowings under
the line of credit.

The Company's short-term and long-term liquidity  requirements generally consist
of operating capital for its businesses and selling,  general and administrative
expenses.  The  Company  continues  to  satisfy  its  short-term  and  long-term
liquidity  requirements  with cash  generated  from  operations and funds from a
public  offering of its Common Stock in September 1997. Due to the nature of its
resources  allocated to  personnel  for  performance  of its  services,  capital
requirements are insignificant.

Net cash used by  operating  activities  was  ($9,776,000)  for the three months
ended March 31, 1998,  compared to  ($1,593,000)  for the same period last year.
During the three months ended March 31, 1998, the Company's accounts  receivable
and costs and estimated  earnings in excess of billings increased due to revenue
growth and  acquisitions.  This increase was partially  offset by an increase in
accounts  payable.  Customer  deposits dropped from December 31, 1997 due to the
timing of several large  projects at the  Company's  procurement  business.  The
additional accounts receivable at March 31, 1998 are expected to be collected in
full in 1998.

Net cash provided by investing  activities  for the three months ended March 31,
1998 was  $7,971,000,  compared to $478,000 for the three months ended March 31,
1997.  The  increase  in cash  provided  is  primarily  the  result of  maturing
marketable securities which were used to fund operating activities offset by the
purchase of a subsidiary, HWS REAG, and the investment in the ING Joint Venture,
which purchased the Clarion Quality Hotel.

Net cash used by financing  activities for the three months ended March 31, 1998
was $752,000  compared to net cash  provided of  $1,502,000  for the same period
last year.  The primary  financing  use in the three months ended March 31, 1998
was the payment of subordinated debt held by Bekins at the date of acquisition.

The Company believes its present cash position,  including  increasing  revenues
and cash on hand, and its ability to obtain  additional  financing as necessary,
will allow the Company to meets its short-term  operating needs for at least the
next twelve months.

                                       14
<PAGE>

PART II.  OTHER INFORMATION

Item 2.   Changes in Securities

On January  9, 1998,  the  Company  completed  the  acquisition  of Bekins.  The
purchase  price of Bekins of  approximately  $11,000,000  consisted  of  514,117
shares of Common Stock and the assumption of certain  Bekins' debt. The purchase
agreement  contains  a  make-whole   adjustment   whereby,  on  a  formula-basis
additional shares will be transferred if the price of the Company's common stock
for the 20 days prior to the one-year  anniversary  date is less than 85% of the
share price on the date of acquisition.

The  issuance  of these  shares of Common  Stock is  claimed  to be exempt  from
registration pursuant to Section 4(2) of the Securities Act of 1933, as amended,
as a transaction  not involving a public  offering.  There were no  underwriting
discounts or  commissions  paid in connection  with the issuance of any of these
shares.

Item 6.   Exhibits and Reports on Form 8-K

   (a)   Exhibits

         11 Computation of earnings per share (Incorporated herein by reference
             to Note 9 to the Company's Consolidated Financial Statements).

         27 Financial Data Schedule

   (b)   Reports on Form 8-K

JANUARY 23, 1998 THE FOLLOWING EVENT WAS REPORTED:

The Company filed a Form 8-K to report that the Company,  HWS Acquisition  Corp.
("Acquisition  Corp"),  Bekins and the sellers listed therein had entered into a
merger agreement pursuant to which Acquisition Corp., a wholly-owned  subsidiary
of the  Company,  would  merge with and into  Bekins.  The filing  included  the
Agreement and Plan of Merger by and among the Company, Acquisition Corp., Bekins
and the sellers named therein.

The following financial statements were filed with this report: None.

MARCH 24, 1998 THE FOLLOWING EVENT WAS REPORTED:

The Company filed Form 8-K/A to amend the filing of Form 8-K on January 23, 1998
to  include  the  requisite  financial  statements  of Bekins  and the pro forma
financial information with respect to the Company's acquisition of Bekins.

The following financial statements were filed with this report:

Bekins Distribution Services Co., Inc.

Independent Auditor's Report.
Balance Sheets as of September 30, 1997 and 1996.
Statements of Operations for the years ended September 30, 1997 and 1996.
Consolidated Statement of Stockholders' Deficit for the years ended
   September 30, 1997 and 1996.
Statements of Cash Flows for the years ended September 30, 1997 and 1996.
Notes to Financial Statements.

Hospitality Worldwide Services, Inc. Pro Forma Financial Information

Balance Sheet as of September 30, 1997 and January 9, 1998. Income Statement for
the nine months ended  September 30, 1997.  Income  Statement for the year ended
December 31, 1996.

                                       15
<PAGE>

APRIL 15, 1998 THE FOLLOWING EVENT WAS REPORTED:

The Company filed a Form 8-K/A to amend the filing of Form 8-K/A on
March 24, 1998 to include certain  revised pro forma  financial  statements with
respect to the Company's acquisition of Bekins.

The following financial statements were filed with this report:

Hospitality Worldwide Services, Inc. Pro Forma Financial Information.

Balance Sheet as of September 30, 1997.
Income Statement for the nine months ended September 30, 1997.  Income Statement
for the year ended December 31, 1996.

                                       16
<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
                                           CHAIRMAN 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:  May 14, 1998

                                       17