The prices of hotels in all regions continue to hemorrhage, with hotels in the Middle Atlantic and South Atlantic regions particularly hard hit. In contrast, hotels in the Mountain states suffered the fewest losses. Hotels in gateway cities continued to have lower price decline relative to those in non-gateway cities. Both our moving average trendlines and standardized unexpected price performance metrics indicate continuing negative price momentum for both large and small hotels. The relative risk premium that lenders require for hotels is still higher than that of other commercial real estate, except for retail properties. Our tea leaves suggest that both large and small hotels should continue to decline in price. This is report number 36 of the index series (year 9, issue 3).