On September 10, 2005, a final public auction was held for the remaining fittings in the hotel's parking lot, with demolition commencing soon afterwards.
On January 16, 2006, the last section of the Ambassador Hotel fell, leaving only the annex that housed the hotel's entrance, shopping arcade, coffee shop, and the Cocoanut Grove, which were promised to be preserved in some manner and integrate within the new school.

A wake attended by hundreds of people was held for the Ambassador Hotel on February 2, 2006 at the Gaylord Apartments and adjoining restaurant H.M.S. Bounty, both part of a historic building built during 1924, directly across the street from the Ambassador Hotel.
Diane Keaton, who was one of many who fought for the preservation of the hotel, was among the speakers of the ceremony.

The Cocoanut Grove was renovated several times before, destroying much of its architectural integrity, and it was promised that it would undergo yet another major transformation before becoming the auditorium for the new school.
 Also promised was preservation of the attached ground floor coffee shop, designed by noted architect Paul Williams.
Due to claims of poor structural integrity, however, the LAUSD decided to demolish most of the Cocoanut Grove, retaining only the hotel entrance and east wall of the Grove.
On September 10, 2005, a final public auction was held for the remaining fittings in the hotel's parking lot, with demolition commencing soon afterwards. On January 16, 2006, the last section of the Ambassador Hotel fell, leaving only the annex that housed the hotel's entrance, shopping arcade, coffee shop, and the Cocoanut Grove, which were promised to be preserved in some manner and integrate within the new school.
A wake attended by hundreds of people was held for the Ambassador Hotel on February 2, 2006 at the Gaylord Apartments and adjoining restaurant H.M.S. Bounty, both part of a historic building built during 1924, directly across the street from the Ambassador Hotel. Diane Keaton, who was one of many who fought for the preservation of the hotel, was among the speakers of the ceremony.
The Cocoanut Grove was renovated several times before, destroying much of its architectural integrity, and it was promised that it would undergo yet another major transformation before becoming the auditorium for the new school.  Also promised was preservation of the attached ground floor coffee shop, designed by noted architect Paul Williams. Due to claims of poor structural integrity, however, the LAUSD decided to demolish most of the Cocoanut Grove, retaining only the hotel entrance and east wall of the Grove.
Ambassador Hotel (Los Angeles)