Jay-Z's hotel plans backfire.

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Recent media reports say Jigga Man has filed a double lawsuit against a bank and investment firm in New York for $3.7 million over his hotel development plans.

Properly named the J Hotel, Jay and his business associates were to invest heavily into the hotel buying $66 million back in 2007 and received a $52 million dollar loan assigned to investment managers Highland Capital Management LP and serviced by NexBank SSB. Additionally, the firm received an $11.8 million loan for the hotel.

But the recession is a mutha!

And because of the bad economy, partners failed to recruit further investors and there was a decline in the funds. Subsequently, Jay offered the land back to Highland rather than face foreclosure. In federal court Wednesday (Feb. 3rd) Jay says Highland execs were skeptical to accept the rapper's offer resulting in him to obtain interest along with personal costs on the loan.

Documents also insist Highland exces wrongly diverted funds that Jay-Z's company placed into reserve to protect environmental issues. According to www.peacefmonline.com, court papers state,"This action arises out of the efforts by defendants to bleed additional funds from (the) plaintiff. Defendants embarked on a bad faith course of conduct."