Today, we have the added factor of the fear of terrorism causing many would-be travelers in the United States and around the world to feel more secure staying closer to home - placing the entire travel and hospitality industry in a precarious position.

Although the stronger properties seem to be managing, and will likely survive to see another upswing, many others - independents, smaller hotels with less defined brands, properties where margins were lower and vacancy rates were higher even during good times - are feeling the economic pressure. This is particularly true of hotels that may have taken on too much debt and are now faced with insufficient cash flow.

How should they deal with these financial woes? The most important advice one can give to a property owner in this situation is first and foremost to be honest with yourself and confront the problem directly, proactively, and as early as possible. Wishing the problem away will not work, expenses are not going to go down, nor will revenues increase on their own, and ignoring your bankers is not going to make them go away.

Following are a few steps hotel owners need to take when they begin to recognize the signs ...