Hotel Pennsylvania Partisans Still Sweat Demolition

"Well, we won a small victory in the battle, but the fight isn't over yet," said Gregory Jones.

The lead organizer of the "Save The Hotel" campaign was reacting to news that financial giant Merrill Lynch will likely stay put in the city's financial district -- and not relocate to the site of his beloved Hotel Pennsylvania.

Mr. Jones told The Observer that activists' fears over the future of the historic hotel now shift from Merrill's relocation to the massive Penn Station redevelopment project, which could also dictate the fate of the Vornado Realty Trust-owned, old Glenn Miller hangout.

"But if Vornado stock keeps dropping it won't matter either way," he added.