They're revamping the original plan to raze the hotel and build two 50-story high-rises, with condos, offices and retail. Preservationists are tickled (it helps when Diane Keaton is on your side). From the LAT:
As of now, plans call for "sensitive rehabilitation" of the hotel to preserve 400 hotel rooms while converting those on the top floors to 45 condos. Meeting space would be reduced, and a slightly smaller ballroom would replace the existing one. The developer plans to propose other buildings on the site to the rear and/or sides of the hotel and a low-scale structure with some retail shops or restaurants to enliven the front of the hotel.