Our Standardized Unexpected Price (SUP) metric continued to show positive momentum in the price of large hotels with continued decline in the price of small hotels. Costlier financing for hotels is occurring due in part to lenders’ perceptions of the increasing relative riskiness of hotels compared to other commercial real estate. We expect higher hotel financing costs going forward. Our early warning indicators suggest that prices of large hotels and small hotels should rise during the first quarter of 2017. This is report number 21 of the index series.