Hotel performance is still in the black based on economic value analysis (EVA), although returns still exceed borrowing costs (for debt). The narrowing of the spread between the cap rate and cost of debt suggests that deals may be getting harder to pencil. Transaction volume declined this quarter relative to the previous quarter, although volume remained stable on a year-over-year basis. Our various pricing metrics point to continued positive price momentum for smaller hotels, with larger hotels still losing ground. From a reading of our tea leaves, we expect a continuing positive momentum, although prices will increase at a decreasing rate. This is report number 25 of the index series.