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In the 1920s, The Shelton was one of New York's great hotels. It had slow decline and was set to be demolished in 1974 to make way for a new office building. That project did not go forward, and in 1990 Marriott took over the hotel and renovated it. Today it is the New York Marriot East Side.
I visited the Shelton/Marriot in 2005 and was told that the pool had been filled in a few years before. However, an article about the hotel in the March 26, 2009 New York Times noted:
Swimming ended years ago, and the space has been split horizontally into three levels. But there is a hint of Houdini in the subbasement: the original tiled pool ladder at the corner where he was submerged is intact.