This seems to work. May not be the best way to do it... But I got it working.
import xlwt
book = xlwt.Workbook(encoding="utf-8")
sheet1 = book.add_sheet("Python Sheet 1")
f=open('hstats.txt','r')
data_list = f.readlines()
f.close()
i=0
x=4
r=0
c=0
for line in data_list:
sheet1.write(r, c, line)
i=i+1
c=c+1
if i > x:
r=r +1
c=0
x=x +5
book.save("python_spreadsheet.xls")