I'm being sued for libel by a hotel for a negative (but absolutely truthful) review I wrote about them on TripAdvisor. How can I deal with this in the most cost effective way?

Have you asked Trip Advisor?

Since they rely on honest reviews then they do not want hotels to sue for bad reviews

They probably have some advice or experience

Update:
Perhaps not wise advice, but relevant & funny.
There is the famous British satire magazine attitude when they were sued:
Arkell v. Pressdram

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