The Hotel Ambush is an event and battle against the Machines and SWAT teams after Neo's return from visiting The Oracle during the Machine War. Cypher made a deal with Agent Smith, resulting in him giving them their location by dropping his cell phone in the bin before they left to meet The Oracle, which allowed the Agents to ambush the crew of the Nebuchadnezzar when they returned.
The Oracle's Message
You're going to have to make a choice. In one hand, you'll have Morpheus' life, and in the other, you'll have your own. One of you is going to die. Which one will be up to you. I'm sorry, kiddo, I really am. You have a good soul and I hate giving good people bad news.”
― The Oracle to Neo[src]
Morpheus took Neo to see The Oracle in hoping to get answers about Neo's destiny and also hope to let Neo know that he is special. During the visit, The Oracle told Neo that somewhere in his journey, he will have to make a choice between saving Morpheus or saving himself. Neo will have both his life and Morpheus' life in his hands and it is up to Neo to figure out how to approach the situation and make his choice.
Before Neo left the apartment, The Oracle gave Neo a cookie and told him that after he finishes eating it, he will feel "right as rain." Neo found Morpheus waiting outside the apartment door. Morpheus told Neo that what she told him is for him only and there will be no equivocations about his destiny. They left the apartment to return back to the hotel.
Struggle to Escape
Upon returning to the hotel, Mouse was in a room on the upper floor levels of the hotel waiting for the others to return. As Neo and the others entered the hotel and were ascending the stairs, Neo notices a black cat walk past the doorway. As Neo turned back to continue ascending the stairs, he looked at the doorway again and another black cat performing the same motions as the previous one. Neo commented on how he experienced Déjà Vu and the other members of the Nebuchadnezzar were concerned. After Trinity explained what déjà vu means within the Matrix, Morpheus immediately ordered Switch and Apoc to take point and quickly lead everyone back upstairs.
While upstairs, Mouse received a phone call from Tank and was told that Agents and Special Forces cut the hard line and something was changed. In fear, Mouse dropped his weapon cases and ran to the nearest window and realized that instead of glass, there were solid bricks. Realized that he and the others were locked and and the agents and tactical forces were on their way, Mouse opened his weapon cases and pulled out his two favorite weapons. Immediately afterwords, the tactical forces burst the door open and Mouse opened fire on them. Mouse was outnumbered and was soon killed by the special forces by being shot to death.
On the middle level of hotel, the rest of the crew saw agents and the special force team moving in from the ground level. After seeing them, Morpheus and the rest quickly ran upstairs to the eight floor of the hotel. Cypher commented on how there is no way out of the hotel due to the change in the Matrix system. Trinity gave Morpheus her phone and he called Tank asking for another way to the lower level. After receiving the information Morpheus lead the way. Before Neo could follow him, Apoc gave Neo a sidearm in case there is a moment it has to be used.
Morpheus lead the group into a small restroom where they made and crawled through a small hole from the wall. Within the restroom wall, the crew began to descend to try to make it to the ground floor. One S.W.A.T. Team member entered the restroom and noticed the hole but did not bother to investigate it. While climbing down from within the wall, Apoc accidentally kicked debris down bellow to Cypher's face. Cypher made a slight noise and the S.W.A.T. Team member instantly looked at the wall. He approached the wall and placed his left ear on it to see it the noise will come again. Within the wall, Cypher sneezed and the S.W.A.T. Team member yelled out to his team that the crew of the Nebuchadnezzar was within the walls.
He started to fire his weapon at the wall and Neo countered back by shooting at him using the gun Apoc gave him. While the S.W.A.T. Team member was taking cover from Neo's incoming fire, Agent Smith possessed his body and used both of his arms to crash through the wall and grab Neo. After realizing that Neo could be captured, Morpheus jumped out through the wall and grabbed Smith until they both were on the ground. Morpheus ordered everyone else to leave and take Neo with them as he is more important than Morpheus. As Neo denies leaving Morpheus, Trinity grabs hold of Neo's ankle and they descend the wall along with Apoc, Switch, and Cypher.
They reached the ground floor boiler room where more special force members were waiting for them. The S.W.A.T. Team shot out smoke grenades at them and then opened fire at the crew. Switch and Apoc countered back and withdrew their firearms and returned fire. They were able to kill a few of the tactical force members, but they were still overrun. Trinity found a grate on the floor and ordered everyone to get inside so they can escape.
Cypher hesitated to enter the grate and got captured by the remaining S.W.A.T team. Trinity and the others escaped through the sewers to reach Mega City.
Battle with Smith
Back in the restroom, Smith makes a short greeting to Morpheus before their engage in a fight within the small restroom. Morpheus started with headbutting Smith, but Smith returned with the same move twice and punched him. Morpheus flew to the wall and Smith stood up to fully engage in their battle.
Morpheus starts with a roundhouse kick and punch in which Smith blocked the first two of his moves but the next two made it through. Smith retaliated by punching Morpheus's hand, then clapping and punching Morpheus across the face where he fell to the ground but hit his face on the toilet bowl before coming into contact with the ground. Morpheus kicked Smith twice and punched him then Smith hit back and put Morpheus in a corner where they both continued to throw and block attempted punches at each other.
Morpheus was able to block and dodge many of Smith's attacks until he started to lose momentum then jumped into the air and held on to the door crease as leverage and started to use kicking maneuvers against Smith. This was still no match as Smith caught Morpheus' right leg after an attempt to kick him and Smith slammed Morpheus to the ground, ending their fight.
As Morpheus was on the ground trying to regain his strength, Smith ordered the S.W.A.T. Team to take him in. As the team moved into the restroom, Morpheus got two punches in against one of the members, but was overrun and was beaten by their batons and was taken.
The rest of the crew made their way to the streets of Mega City and was traveling away from the hotel in search for an exit. Cypher secretly contacted Tank through a payphone and asked for an exit after the police vehicle transporting him exploded.
Cypher went to the exit and jacked out of the matrix. Trinity called Tank as well and asked for an exit. In the Real World, Cypher asked Tank for the location of the others. After realizing that they were about to exit the matrix, Cypher grabbed the lightning rifle onboard their Hovercraft and fired a shot at Tank causing him to get up from his seat and Cypher shot another blast at him knocking Tank unconscious. Dozer then charged at Cypher to try to stop him, but Cypher was able to shoot another blast from the lightning rifle to kill Dozer.
Before any of the other members could leave the matrix, their exit telephone stopped ringing. Trinity called the Operator's headset number and was surprised to hear Cypher talking on the line. Cypher then told Trinity his plan and how much he hated Morpheus. In retaliation, Cypher unplugged Switch and Apoc from their mental stasis, killing them instantly. Before he could unplug Neo, Tank regained consciousness and picked up the lightning rifle and fired at Cypher, killing him, although not before vengefully replying to the latter's disbelief at his survival that whether or not it is possible to survive Cypher's earlier attack, the traitor was very much dead.
Trinity and Neo returned to the real world and felt remorse over the death of many of their crew members and the capture of their captain. Tank also makes clear that he'll ultimately survive his earlier wound from Cypher, though his brother Dozer was not nearly as lucky. As they realized that the agents will used Morpheus to gain access to the Zion mainframe, Tank decides that Morpheus too must be unplugged.
However, Neo stops Tank and tells him and Trinity that The Oracle told Neo that his event would happen. Neo then decides that he must go back into the matrix and rescue Morpheus. As Neo activated his device that allows him to enter the matrix, Trinity activates hers and told him that she is going with him and they both prepare to go on a daring rescue mission.