<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE AUDITED
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENT OF OPERATIONS OF
ALTERNATIVE LIVING SERVICES, INC., FILED WITH THE COMPANY'S FORM 10-K FOR THE
PERIOD ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS AND RELATED FOOTNOTES.  THE FOLLOWING RESTATED 
FINANCIAL DATA SCHEDULES HAVE BEEN PROVIDED TO RESTATE ALL PREVIOUS FILED
FINANCIAL DATA SCHEDULES GIVING EFFECT TO THE STERLING MERGER WHICH HAS BEEN
ACCOUNTED FOR AS A POOLING-OF-INTERESTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                                                    
<PERIOD-TYPE>                   YEAR                      
<FISCAL-YEAR-END>                          DEC-31-1997    
<PERIOD-START>                             JAN-01-1997    
<PERIOD-END>                               DEC-31-1997    
<CASH>                                          79,838    
<SECURITIES>                                    90,000    
<RECEIVABLES>                                    6,120    
<ALLOWANCES>                                         0    
<INVENTORY>                                          0    
<CURRENT-ASSETS>                               198,833    
<PP&E>                                         333,113    
<DEPRECIATION>                                   9,500    
<TOTAL-ASSETS>                                 553,552    
<CURRENT-LIABILITIES>                           69,305    
<BONDS>                                        318,069    
<PREFERRED-MANDATORY>                                0    
<PREFERRED>                                          0    
<COMMON>                                       165,420    
<OTHER-SE>                                    (21,523)    
<TOTAL-LIABILITY-AND-EQUITY>                   553,552    
<SALES>                                        130,744    
<TOTAL-REVENUES>                               130,744    
<CGS>                                                0    
<TOTAL-COSTS>                                  143,177    
<OTHER-EXPENSES>                                   112    
<LOSS-PROVISION>                                     0    
<INTEREST-EXPENSE>                               3,932    
<INCOME-PRETAX>                                (8,263)    
<INCOME-TAX>                                         0    
<INCOME-CONTINUING>                            (8,263)    
<DISCONTINUED>                                       0    
<EXTRAORDINARY>                                      0    
<CHANGES>                                            0    
<NET-INCOME>                                   (8,263)    
<EPS-PRIMARY>                                   (0.44)    
<EPS-DILUTED>                                   (0.44)