This is tough.How did you ever got into this situation.Hotel is a huge investment and a site need to be thoroughly researched.I am not an expert in this subject as I own only one hotel but to my knowledge they are some means available to research the site as visiting near located hotels frequently,futher obtainning star report on the location and even hiring a consultant to prepare feasibility study for the location.Building at poor location is a problem.I would rather have a lesser brand of the hotel at good location.  stephen

It is all about your source of demand generators in relation to your location. When the question is stated 'poor location' is it a poor location for transient leisure guests because you are miles from the nearest highway? Or are you a corporate hotel adjacent to a company that is no longer in business? If the assumed demand generators are not there, then the property, if possible, needs to be repositioned in the market. This is a very arduous task. I am in the business of feasibility studies and contrary to popular belief, not all studies come back positive. Maybe a hotel in that location is not the highest and best use for the location. The situation needs to be thoroughly analyzed and tough decisons need to be made.

I also think a good marketing and target-customer strategy can help.  Depending on how you define a 'poor location,' any location within a given area can become attractive to certain guests (read: transients, overnighters, etc.) if the price is right and if you are at the top of the list of hotels they find. 

Spend the money you saved purchasing a poor location on direct sales, internet marketing, and billboard ads.