Members of the Kennedy family are urging city officials to bulldoze the defunct property because it's where Robert Kennedy was shot in 1968, the World Entertainment News Network said Friday.
But, Keaton insists Los Angeles School District bosses, who own the building, should consider developing around the 83-year-old hotel and keeping parts for their historical significance.
"We in Los Angeles are so guilty of wiping out our history," said Keaton, a director of the Los Angeles Conservancy group. "The Ambassador Hotel is the history of Los Angeles ... We have to fight for this."
Keaton is particularly keen on redeveloping the famous Ambassador nightclub The Cocoanut Grove, where Frank Sinatra and Bing Crosby used to perform, and the study, where F. Scott Fitzgerald wrote "The Great Gatsby."