The price of hotels showed strength in all regions except the South Atlantic this quarter, with all regions except New England experiencing double-digit growth year over year. Hotels in non-gateway cities posted higher quarterly and yearly gains relative to gateway cities, with the non-gateway hotels’ prices increasing 4 percent for the quarter, compared to 2 percent for gateway properties. On a year-to-year basis, non-gateway hotels recorded a 19-percent increase versus 3 percent for gateway properties. However, regardless of price changes, the transaction volume for all hotels (that is, both large hotels and small hotels) fell this quarter. With regard to price, small hotels appear to be undervalued (while large hotels range from correctly priced to overvalued) based on both a 3-year and a 5-year moving average. The cost of hotel debt financing continued to rise this quarter, as well as year over year. Lenders are requiring relatively more compensation for hotel loans relative to the 10-year risk-free rate due to increased perceived risk. As in the previous period (Q3 of 2022), our economic-value-added and shareholder-value-added metrics continue to indicate that the cost of borrowing exceeds the return for hotels. Looking toward the next quarter (i.e., near term), our leading indicators of hotel price performance indicate that we should expect slower or declining price momentum for larger hotels but not necessarily for smaller hotels. This is volume 11, issue 4 of the hotel indices series.