Hotels are the baby of real estate investing and running a business.Unlike any other commercial asset class, hotels are extremely labor-intensive to run but can spit off ridiculous cash flow.

Consider offloading an underperformer, or a high equity property and getting better, larger or more assets.

I proposed the question if the separation of funds was for asset protection.  

In previous roles, I was responsible for the asset management, capital improvement, repair, and maintenance of an ANG Fighter Base worth over $400M.

Be an asset to them.

Never invest in Longterm assets with short term debt.  

I like the asset class IE not C class in the deep south.

If they have no assets or if you don't have verifiable proof a lawsuit is worthless.

It adds extra protection for your assets.

If they have a assets or a stable job with good pay, I would definitely go the lawsuit route and I would do this BEFORE they leave the property and you know where they are.