New Hotel In Downtown LA Announced!

http://www.nytimes.com/2005/08/09/business/09road.html?pagewanted=all

Though it undoubtedly has been reported elsewhere by now, I just ran across an item in tomorrow's New York Times that describes an unnamed building - which matches the description of the long vacant Embassy Hotel and Auditorium building at 851 S. Grand Avenue - as being the site of the latest hip boutique hotel in LA.

The Gansevoort in South Beach will have 240 rooms plus more than 300 condominium units. The Gansevoort in Los Angeles is being built in a domed 1914 landmark building with an 1,800-seat theater, a block from the Staples Center, and will feature a pool with glass walls visible from the street.

My question is - what are they going to do with the theater? I have also seen the theater as being listed with as many as 2300 seats in the past. Below is a link to two vintage photos:

http://www.usc.edu/dept/geography/losangeles/lawalk/spark/embassy.html