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

                                   FORM 10-QSB

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

                For the Quarterly Period Ended SEPTEMBER 30, 2000

                           Commission File NO. 0-3858


                        INTERNATIONAL LEISURE HOSTS, LTD.
             ------------------------------------------------------
             (Exact name of Registrant as specified in its charter)


            Wyoming                                      86-0224163
-------------------------------                ---------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

        3207 S. Hardy Drive
             Tempe, AZ                                     85282
---------------------------------------                  ----------
(Address of principal executive office)                  (Zip Code)

                                 (480) 829-7600
               -------------------------------------------------
               (Issuer's telephone number, including area code )

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

                                 YES [X] NO [ ]

State the number of shares outstanding of each of the issuer's classes of common
stock as of the close of the latest  practicable date. There were 694,457 shares
of $.01 par value common stock outstanding as of September 30, 2000.
<PAGE>
                                   PART I - FINANCIAL INFORMATION

ITEM 1 - Summarized Financial Information

                        INTERNATIONAL LEISURE HOSTS, LTD.
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                               September 30,        March 31,
                                                                   2000               2000
                                                               -----------        -----------
<S>                                                            <C>                <C>
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                                    $   105,540        $   306,354
  Accounts receivable                                               15,679            130,436
  Merchandise inventories                                          120,668            100,936
  Prepaid expenses and other                                        38,918             17,466
                                                               -----------        -----------
      Total current assets                                         280,805            555,192
                                                               -----------        -----------
PROPERTY AND EQUIPMENT:
  Buildings and improvements                                     6,258,425          6,248,824
  Equipment                                                      1,722,599          1,701,557
  Leasehold improvements                                           325,600            325,600
  Construction in process                                          585,462            294,176
                                                               -----------        -----------
      Total property and equipment                               8,892,086          8,570,157
  Less accumulated depreciation and amortization                 2,742,973          2,592,796
                                                               -----------        -----------
      Property and equipment - net                               6,149,113          5,977,361
                                                               -----------        -----------
DEPOSITS                                                             1,500
                                                               -----------        -----------
TOTAL                                                          $ 6,431,418        $ 6,532,553
                                                               ===========        ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
  Note payable under line of credit from related party         $   950,000        $ 1,460,000
  Accounts payable:
    Trade                                                          181,879            105,291
    Related party                                                   48,327             70,563
  Income taxes payable                                             106,851             59,851
  Accrued liabilities                                               40,819             49,371
  Advance deposits                                                 121,839            149,151
                                                               -----------        -----------
      Total current liabilities                                  1,449,715          1,894,227
DEFERRED INCOME TAXES                                              170,076            178,076
                                                               -----------        -----------
      Total liabilities                                          1,619,791          2,072,303
                                                               -----------        -----------
COMMITMENTS AND CONTINGENCIES (Note 2)

SHAREHOLDERS' EQUITY:
  Preferred stock, $5 par value - authorized 100,000
   shares; none issued
  Common stock, $.01 par value - authorized 2,000,000
   shares; issued, 718,373 shares                                    7,184              7,184
  Additional paid-in capital                                       656,426            656,426
  Retained earnings                                              4,226,729          3,875,352
                                                               -----------        -----------
                                                                 4,890,339          4,538,962
  Less common stock in treasury - at cost, 23,916 shares           (78,712)           (78,712)
                                                               -----------        -----------
      Shareholders' equity - net                                 4,811,627          4,460,250
                                                               -----------        -----------
      TOTAL                                                    $ 6,431,418        $ 6,532,553
                                                               ===========        ===========
</TABLE>

See notes to unaudited condensed consolidated financial statements

                                     2 of 13
<PAGE>
                        INTERNATIONAL LEISURE HOSTS, LTD.
              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                     Six months ended         Three months ended
                                                       September 30,             September 30,
                                                  -----------------------   -----------------------
                                                     2000         1999         2000         1999
                                                  ----------   ----------   ----------   ----------
<S>                                               <C>          <C>          <C>          <C>
REVENUES:
  Sales of merchandise                            $1,286,880   $1,538,327   $  928,591   $1,182,571
  Room, cabin and trailer space rentals            1,204,267    1,509,505      894,421    1,176,005
  Other rentals and income                           182,208      206,398      136,531      158,657
  Net gain on asset disposals                                      11,159                    13,209
  Interest                                             6,946        7,170        4,536        5,727
                                                  ----------   ----------   ----------   ----------
      Total revenues                               2,680,301    3,272,559    1,964,079    2,536,169
                                                  ----------   ----------   ----------   ----------
COSTS AND EXPENSES:
  Cost of merchandise                                759,556      908,231      547,324      698,796
  Operating                                        1,047,215    1,172,825      628,207      746,677
  General and administrative                          57,918       37,502       21,894       12,031
  General and administrative - related party          70,663       72,101       35,508       37,945
  Net loss on asset disposals                          4,170                     3,155
  Depreciation and amortization                      168,692      213,889       77,437      107,058
  Interest - related party                            46,710       36,760       19,302       16,580
                                                  ----------   ----------   ----------   ----------
      Total costs and expenses                     2,154,924    2,441,308    1,332,827    1,619,087
                                                  ----------   ----------   ----------   ----------

Income before income taxes                           525,377      831,251      631,252      917,082

Provision for income taxes                           174,000      309,000      205,800      318,000
                                                  ----------   ----------   ----------   ----------

      NET INCOME                                  $  351,377   $  522,251   $  425,452   $  599,082
                                                  ==========   ==========   ==========   ==========

      NET INCOME PER COMMON SHARE                 $     0.51   $     0.75   $     0.61   $     0.86
                                                  ==========   ==========   ==========   ==========
</TABLE>

See notes to unaudited condensed consolidated financial statements

                                     3 of 13
<PAGE>
                       INTERNATIONAL LEISURE HOSTS, LTD.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                          Six months ended
                                                            September 30,
                                                       ------------------------
                                                          2000          1999
                                                       ---------      ---------
OPERATING ACTIVITIES:
  Net income                                           $ 351,377      $ 522,251
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation and amortization                         168,692        213,889
   Net loss (gain) on asset disposals                      4,170        (11,159)
  Changes in assets and liabilities:
   Accounts receivable                                   114,757          8,353
   Merchandise inventories                               (19,732)          (475)
   Prepaid expenses and other                            (22,952)        (4,715)
   Accounts payable - trade                               76,588        155,388
   Accounts payable - related party                      (22,236)        20,613
   Income taxes payable                                   47,000        108,148
   Accrued liabilities                                    (8,552)        12,226
   Advance deposits                                      (27,312)       (86,130)
   Deferred income taxes                                  (8,000)
                                                       ---------      ---------
          Net cash provided by operating activities      653,800        938,389
                                                       ---------      ---------
INVESTING ACTIVITIES:
  Purchases of property and equipment                   (379,114)      (451,685)
  Proceeds from sale of property and equipment            34,500         43,750
                                                       ---------      ---------
          Net cash used in investing activities         (344,614)      (407,935)
                                                       ---------      ---------
FINANCING ACTIVITIES:
  Loan payments to related party                        (510,000)
  Common stock purchased for treasury                                      (700)
                                                       ---------      ---------
          Net cash used in financing activities         (510,000)          (700)
                                                       ---------      ---------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS    (200,814)       529,754

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR             306,354        296,291
                                                       ---------      ---------

CASH AND CASH EQUIVALENTS, END OF PERIOD               $ 105,540      $ 826,045
                                                       =========      =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  - Cash paid for interest                             $  66,506      $  60,390
                                                       =========      =========
  - Cash paid for income taxes                         $  75,000      $  70,000
                                                       =========      =========

See notes to unaudited condensed consolidated financial statements

                                     4 of 13
<PAGE>
                        INTERNATIONAL LEISURE HOSTS, LTD.

         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
          For the Six Month Periods Ended September 30, 2000 and 1999


1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

International  Leisure  Hosts,  Ltd.  (the  "Company")  operates in one business
segment,  the  ownership and  operation of Flagg Ranch  Resort,  a  full-service
resort motel and trailer park located in the John D.  Rockefeller  Jr.  Memorial
Parkway,  approximately  four miles north of Grand Teton  National  Park and two
miles south of the southern entrance to Yellowstone National Park.

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions  to Form 10-QSB.  Accordingly,
they do not  include all of the  information  and notes  required by  accounting
principles  generally  accepted  in the United  States of America  for  complete
financial  statements.  In  the  opinion  of  management,  all  adjustments  and
reclassifications  considered  necessary for a fair and comparable  presentation
have been made and are of a normal recurring  nature.  Operating results for the
six months  ended  September  30,  2000 are not  necessarily  indicative  of the
results that may be expected  for the year ending  March 31, 2001.  The enclosed
financial  statements  should  be  read in  conjunction  with  the  consolidated
financial  statements and notes thereto  included in the Company's Annual Report
on Form 10-KSB for the year ended March 31, 2000.

SIGNIFICANT  ACCOUNTING POLICIES - The Company prepares its financial statements
in accordance with accounting principles generally accepted in the United States
of America. A summary of significant accounting policies is as follows:

a.   MERCHANDISE   INVENTORIES  are  stated  at  the  lower  of  aggregate  cost
     (first-in, first-out basis) or market.

b.   PROPERTY  AND  EQUIPMENT  are stated at cost.  Depreciation  is computed by
     straight-line  and  accelerated  methods over the  estimated  useful lives,
     which range from 5 to 40 years, for such assets. Leasehold improvements are
     amortized using the  straight-line  method over the lesser of the estimated
     useful life of the related asset or the term of the lease.

     The  Company  reviews  the  carrying  values of its  long-lived  assets and
     identifiable intangibles for possible impairment whenever events or changes
     in circumstances indicate that the carrying amount of assets to be held and
     used may not be  recoverable.  For assets to be  disposed  of, the  Company
     reports long-lived assets and certain identifiable intangibles at the lower
     of carrying amount or fair value less cost to sell.

c.   INCOME TAXES - Deferred  income taxes have been  provided for the temporary
     differences between financial statement and income tax reporting on certain
     transactions.

                                     5 of 13
<PAGE>
d.   USE OF ESTIMATES - The  preparation  of financial  statements in conformity
     with  accounting  principles  generally  accepted  in the United  States of
     America  necessarily  requires management to make estimates and assumptions
     that affect the reported  amounts of assets and  liabilities and disclosure
     of  contingent  assets  and  liabilities  at  the  date  of  the  financial
     statements  and the reported  amounts of revenues  and expenses  during the
     reporting period. Actual results could differ from those estimates.

e.   NET INCOME PER COMMON SHARE - Basic net income per common share is computed
     by dividing  net income by the  weighted  average  number of common  shares
     outstanding.  The weighted average number of common shares  outstanding was
     694,477 and 694,519  shares for the six month periods  ended  September 30,
     2000  and  1999,  respectively.  Diluted  net  income  per  share  reflects
     potential  dilution  that could occur from common shares  issuable  through
     stock  options,  warrants or other  convertible  securities;  however,  the
     Company has no dilutive securities.

f.   STATEMENTS OF CASH FLOWS - For purposes of the  consolidated  statements of
     cash flows, cash and cash equivalents represent cash in banks, money market
     funds, and certificates of deposit with initial  maturities of three months
     or less.

g.   ESTIMATED  FAIR VALUE OF FINANCIAL  INSTRUMENTS - The Company has estimated
     the fair value of its financial  instruments  using available  market data.
     However,  considerable  judgment is required in interpreting market data to
     develop estimates of fair value. The use of different market assumptions or
     methodologies  may have a material  effect on the estimates of fair values.
     The  carrying  values  of  cash,  receivables,  lines of  credit,  accounts
     payable, and accrued expenses approximate fair values due to the short-term
     maturities or market rates of interest.

h.   NEW ACCOUNTING  PRONOUNCEMENT  - The Financial  Accounting  Standards Board
     ("FASB")  issued SFAS No. 133,  ACCOUNTING FOR DERIVATIVE  INSTRUMENTS  AND
     HEDGING  ACTIVITIES.  The effective date of SFAS No. 133 for the Company is
     the  fiscal  quarter  beginning  April 1, 2001.  SFAS No.  133  establishes
     accounting and reporting  standards for derivative  instruments,  including
     certain   derivatives   embedded  in  other  contracts,   and  for  hedging
     activities.  It requires that  entities  record all  derivatives  as either
     assets or liabilities,  measured at fair value. Management does not believe
     that  SFAS  No.  133  will  have a  significant  effect  on  its  financial
     statements.

2. COMMITMENTS AND CONTINGENCIES

The Company receives its operating  authorization from the National Park Service
("NPS").  The NPS Contract (the "Contract") which became effective on January 1,
1990, will expire on December 31, 2009.  Under the terms of the Contract,  prior
to December  31,  2002,  the Company is  required to move its  existing  54-unit
riverside  motel from its current  location  to the high ground  above the Snake
River, to provide for new employee housing and make certain other  improvements.
The Company has chosen to meet these  requirements by moving the riverside motel
and  converting it into employee  housing,  plus  building  additional  employee
support  facilities,  which began in summer 1998,  with  expected  completion in
summer 2002.  The remaining  cost of this  relocation is estimated to be between
$100,000 and $350,000  depending on the number of employee housing units and the
extent of additional improvements required by the NPS.

                                     6 of 13
<PAGE>
The Contract  fee to the NPS is  calculated  at 2 percent of gross  receipts (as
defined),  subject to review and possible  adjustment  every five years. For the
six months ended September 30, 2000, and 1999, this fee amounted to $54,400, and
$63,450, respectively, which has been recorded as operating expense.

Flagg Ranch faces competition from hotels,  camping areas and trailer facilities
in Yellowstone and Grand Teton National Parks, as well as from a large number of
hotels and motels in Wyoming,  Montana and Idaho, offering some facilities which
are similar to those offered by Flagg Ranch. In addition,  the business of Flagg
Ranch is susceptible to weather conditions and unfavorable trends in the economy
as a whole.  Business  could be  significantly  affected  depending upon actions
which might be taken by the NPS if cutbacks are made to their budget. If the NPS
decides to close  Yellowstone  National Park for the winter  months,  then Flagg
Ranch would have to discontinue its winter operations. NPS budget cutbacks could
also  negatively  impact  the  length of the  summer  season  and the  number of
visitors to the Parks and have a  corresponding  negative  impact on Flagg Ranch
revenues.

On May 20, 1997,  the Fund for Animals,  Biodiversity  Legal  Foundation et. al.
filed a lawsuit  against  the NPS  challenging  the action of the NPS  regarding
winter use of Yellowstone and Grand Teton National Parks.  The plaintiffs  asked
the Federal Court to stop winter activities,  primarily snowmobiling and related
snow  grooming,   until  environmental  impacts  are  documented.  A  settlement
agreement was reached that required the NPS to prepare an  environmental  impact
statement ("EIS") during which time period the Parks continued  activities under
the then existing winter visitor-use plan.

Upon  completion  of the EIS,  the NPS  prepared  a draft  winter-use  plan with
several  alternatives.   The  NPS  has  indicated  that  the  alternative  which
eliminates  snowmobiling from the Park is the preferred  alternative.  They have
also  indicated  that once the  winter-use  plan is  adopted,  there  would be a
phase-in  period of up to three years during which time the winter  snowmobiling
operation  could be  continued.  It is currently  anticipated  that the NPS will
adopt a final winter-use plan around mid-November of 2000.

If  the  NPS  goes  forward  with  its  plans  to  eliminate  snowmobiling  from
Yellowstone National Park, then Flagg Ranch would have to suspend or discontinue
winter operations  completely.  This would have a significant negative impact on
the revenues and financial  results of the Company.  During fiscal 2000,  winter
operations accounted for approximately 27% of total revenues.

The  Department of Labor ("DOL") has notified the Company,  on behalf of current
and past  employees,  that additional  overtime is due for the period  beginning
November 1, 1997. Currently the Company pays overtime for any hours in excess of
48 during a one-week period. The Company, as well as other Park concessioners in
the area,  have  operated  under an  exemption  that  exists  in the Fair  Labor
Standards  Act.  The DOL has claimed that this  exemption  does not apply due to
conflicting  language  in the  Contract  Work Hours  Safety  Standard  Act which
requires  overtime to be paid to laborers and mechanics  working on a government
contract after 40 hours worked during a week. If the DOL prevails,  the estimate
of the additional  expense to the Company ranges from $40,000 to $60,000.  While
there is no  guarantee,  the  Company  believes  it will not be  subject  to the
additional overtime payments.

                                     7 of 13
<PAGE>
3. TRANSACTIONS WITH RELATED PARTIES

General and  administrative  - related  party  expenses for the six months ended
September  30,  2000  and 1999  represent  management  fees  and  administrative
expenses paid to related parties and totaled approximately $71,000, and $72,000,
respectively.  Related  parties during the six months ended  September 30, 2000,
and 1999 are owned by the Company's  current majority owner,  Robert Walker,  or
family members.  Related parties during the six month period ended September 30,
2000 also include a company owned by the Company's current President, Michael P.
Perikly.

The Company incurred  borrowings under a line of credit agreement with a related
party (Note 4).  Interest  incurred for the six months ended  September 30, 2000
and 1999 was  $66,506 and  $60,390,  respectively.  During the six month  period
ended  September  30, 2000,  the Company  repaid  $510,000 on the line of credit
agreement.

At  September  30,  2000,  the Company  recorded  payables of $48,327 to related
parties for certain operating  expenses paid by the related parties on behalf of
the Company.

4. NOTE PAYABLE UNDER LINE OF CREDIT

During   October  1999,  the  Company   renewed  a  line  of  credit   agreement
("Agreement")  with an affiliated  company  expiring  September 30, 2000,  which
provides for  collateralized  borrowings of up to $1,500,000 at an interest rate
of prime plus .5 percent.  Borrowings under the Agreement are  collateralized by
the assets and improvements of Flagg Ranch. The Company has borrowed $950,000 on
this  line of credit  as of  September  30,  2000.  The  terms of the  Agreement
contain, among other provisions, requirements for maintaining minimum cash flows
(as defined in the Agreement) and places limitations on the Company's ability to
make loans. As of September 30, 2000, the Company was not in compliance with the
minimum  cash flow  requirement.  On October 1, 2000 the  Agreement  was renewed
until September 30, 2001.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

The statements contained in this Report regarding  management's  anticipation of
the Company's facility completion schedules, quality of facilities,  fulfillment
of National Park Service  requirements,  consumer response to marketing efforts,
ability to offset  inflation  and  adequacy of  financing,  constitute  "forward
looking"  statements  within the  meaning of the Private  Securities  Litigation
Reform  Act  of  1995.  Management's  anticipation  is  based  upon  assumptions
regarding  levels  of  competition,   acceptance  of  facilities  by  consumers,
favorable weather  conditions,  ability to complete facility  construction,  the
market in which the Company operates, the stability of the economy and stability
of the regulatory environment.  Any of these assumptions could prove inaccurate,
and therefore  there can be no assurance  that the  forward-looking  information
will prove to be accurate.

The  Company's  net income  for the six  months  ended  September  30,  2000 was
$351,000  ($.51 per share).  This  compares to net income of $522,000  ($.75 per
share) for the six months ended  September  30, 1999.  The $171,000  decrease in
income is  primarily  attributable  to the loss of  revenue  resulting  from the
closure and  evacuation of the Company's  facilities for two weeks during August
2000 due to the fire danger in the  immediate  area from the  surrounding  fires

                                     8 of 13
<PAGE>
that  threatened  the Park during the summer.  The Company has limited  business
interruption  insurance that the Company  believes will cover some of the losses
incurred.  Insurance  adjusters  are  currently  reviewing  the  Company's  loss
calculations  to determine  the coverage  amounts.  While none of the  Company's
facilities were damaged,  the closure and fire threat prompted a large number of
cancellations even after the facilities  reopened.  The Company's net income for
the quarter  ended  September  30,  2000 was  $425,000  ($.61 per  share).  This
compares  to net  income of  $599,000  ($.86 per share)  for the  quarter  ended
September 30, 1999. Changes in the Company's revenues and expenses for the three
and six months  ended  September  30, 2000 and 1999 are  summarized  below.  All
references to years,  represent the six month period ending  September 30 of the
stated year.

Flagg Ranch,  the principal  business of the Company,  is operated as a seasonal
resort.  The two  seasons  coincide  with  the  opening  and  closing  dates  of
Yellowstone  and  Grand  Teton  National  Parks.  The  summer  season  runs from
approximately  May 22  through  October 8 and the winter  season  runs from late
December through mid-March.

REVENUES

Total  revenues  for  2000  decreased  by  $592,000  or 18% from  1999.  Of this
decrease,  $249,000  was from  motel and  cabin  rentals,  $56,000  from RV park
rentals,  $98,000 from food services,  $63,000 from grocery store sales, $67,000
from gift shop sales,  $23,000  from  gasoline  sales,  $15,000  from float trip
revenue, $13,000 in trail ride rentals and $8,000 in miscellaneous income. Total
revenues for the three months ended  September 30, 2000 decreased by $572,000 or
23% from 1999.  Of this  decrease,  $230,000  was from motel and cabin  rentals,
$52,000 from RV park rentals, $$99,000 from food services,  $61,000 from grocery
store sales,  $60,000 from gift shop sales, $34,000 from gasoline sales, $10,000
from  float  trip  revenue,  $12,000  in trail  ride  rentals,  and  $14,000  in
miscellaneous  income.  The primary reason for the decrease in all revenue items
is due to the closure and  evacuation of the Company's  facilities for two weeks
in August as a result of the fires in the surrounding areas of the Park.

EXPENSES

The ratio of cost of merchandise  sold to sales of  merchandise  was 59% in 2000
and 1999. Operating expenses decreased by $126,000 or 11% in 2000 as compared to
1999. The ratio of operating  expenses to total revenue increased to 39% in 2000
from  36% in  1999.  Of this  decrease,  $77,000  was  from  labor,  $24,000  in
utilities,  $5,000 in office supplies,  $5,000 in equipment  rental,  $15,000 in
snowmobile  parts and gas,  $14,000 in outside  services,  $14,000 in  telephone
costs,  $9,000 in Company  vehicle and  travel,  $5,000 in  printing,  $8,000 in
credit card fees,  $4,000 in licenses and fees,  and $9,000 in  franchise  fees.
Offsetting  these  decreases  were  increases of $31,000 in operating  supplies,
$9,000 in repairs and maintenance,  $4,000 in advertising, $5,000 in postage and
freight, $9,000 in insurance, and $5,000 in other items.  Depreciation decreased
primarily  as a  result  of a  number  of  large  dollar  items  becoming  fully
depreciated  in the prior  fiscal  year.  General  and  administrative  expenses
increased $20,000 or 54% in 2000 as compared to 1999. Of this increase,  $12,000
was in legal and  accounting  fees,  $6,000 in travel  and  transportation,  and
$2,000 in other items.

                                     9 of 13
<PAGE>
INFLATION

The  Company  expects  that it will be able to  offset  increases  in costs  and
expenses,  principally labor,  caused by inflation,  by increasing prices on its
services with minimal effect on operations.

LIQUIDITY AND CAPITAL RESOURCES

During  the prior  fiscal  year,  the  Company  continued  work on a project  to
relocate it's riverside motel and other buildings  located along the Snake River
to higher ground for use as employee  dormitories as well as the construction of
new employee management housing. During the six months ended September 30, 2000,
the  Company  incurred  costs of  approximately  $291,000  related  to the above
construction  projects.  In addition the Company has  purchased new vehicles and
other  equipment  at a cost  of  $88,000.  Also,  during  the six  months  ended
September 30, 2000 the Company repaid  $510,000 on the line of credit  agreement
with a related  party.  The Company's  working  capital  increased to a negative
$1,169,000 at September 30, 2000 from a negative $1,339,000 at March 31, 2000.

The Company may incur  additional costs of between $100,000 to $350,000 prior to
December 31, 2002 to finish  relocating  the employee  housing units as required
under the NPS Contract.

The Company intends to fund these  improvements  through existing cash funds and
cash generated  from  operations.  Cash generated from  operations was $706,000,
$964,000,  and  $432,000  for the  fiscal  years  ended  2000,  1999  and  1998,
respectively.  Cash generated from operations for the six months ended September
30, 2000 and 1999 was  $654,000 and  $938,000,  respectively.  The  construction
funds will have to be obtained  from  outside  sources to the extent they exceed
cash generated from  operations.  There is no guarantee that the Company will be
able to procure financing on favorable terms.

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<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     The  Department  of Labor  ("DOL") has notified  the Company,  on behalf of
     current and past employees,  that additional overtime is due for the period
     beginning  November 1, 1997.  Currently  the Company pays  overtime for any
     hours in excess of 48 during a one-week  period.  The  Company,  as well as
     other Park concessioners in the area, have operated under an exemption that
     exists in the Fair  Labor  Standards  Act.  The DOL has  claimed  that this
     exemption does not apply due to  conflicting  language in the Contract Work
     Hours Safety  Standard Act which  requires  overtime to be paid to laborers
     and mechanics working on a government contract after 40 hours worked during
     a week. If the DOL prevails,  the estimate of the additional expense to the
     Company  ranges from $40,000 to $60,000.  While there is no guarantee,  the
     Company  believes  it  will  not  be  subject  to the  additional  overtime
     payments.

ITEM 2. CHANGES IN SECURITIES

     None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     None.

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

     None

ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS

     None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a) Financial Statements                                               Page
                                                                            ----
         The following financial statements of International
         Leisure Hosts, Ltd. are included in Part I, Item 1:

         Condensed  Consolidated Balance Sheets - September 30, 2000
           (Unaudited) and March 31, 2000                                     2

         Condensed  Consolidated  Statements  of Income - Three and
           Six months ended September 30, 2000 and 1999 (Unaudited)           3

         Condensed Consolidated Statements of Cash Flows -Six months
           ended September 30, 2000 and 1999 (Unaudited)                      4

         Notes to unaudited condensed consolidated financial statements       5

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<PAGE>
     (c) The following exhibits are incorporated by reference as indicated:

         3.1  By-Laws-Adopted  June 22,  1992 filed  with Form 10-K dated
              March 31, 1992

         3.2  Articles of Incorporation-filed with Form 10-K dated
              March 31, 1986, pages 32-41

         10.1 United States Department of the Interior National Park Service
              Contract-filed with Form 10-Q dated December 31, 1989

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<PAGE>
                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this report to be signed by the undersigned, thereunto duly authorized.


                        INTERNATIONAL LEISURE HOSTS, LTD.
                        ---------------------------------
                                  (REGISTRANT)


DATE: November 7, 2000                  BY: ROBERT L. WALKER
                                            ------------------------------------
                                            Robert L. Walker
                                            Chairman and Chief Executive Officer


DATE: November 7, 2000                  BY: MICHAEL P. PERIKLY
                                            ------------------------------------
                                            Michael P. Perikly
                                            President and Principal Financial
                                            Officer

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