 The hotel eventually slipped into decay as time took its toll.In a controversial decision, it was decided in 1967 to demolish the old hotel and replace it with a high-rise structure.Reasons given for the demolition include the damage to the banquet section and South wing during World War II, uneven settling of the building on its floating foundation (some parts of the building had sunk as much as ), and damage to the decorative oya stone that was causing pieces to fall off.