What should a hotel do if it has a negative cash balance of $230,000 at the end of the month?

In a situation where a hotel has a negative cash balance of $230,000, increasing their bank loan can provide immediate liquidity to manage operational needs and stabilize cash flow. By obtaining additional funds, the hotel can cover its current liabilities, including payroll, utility bills, and other expenses, which are critical for maintaining daily operations. A bank loan can also offer a structured way to address the negative cash balance over time, allowing the hotel to execute a plan to improve its financial situation.

In contrast, while decreasing expenses, postponing payments to vendors, or selling long-term assets might address cash flow issues temporarily, these actions may also lead to long-term operational challenges, damage relationships with vendors, or affect the hotel's overall asset base negatively. Thus, obtaining additional financing through a bank loan is often the most effective and sustainable strategy to alleviate immediate cash flow difficulties.