Scratch the 1,100-room Hilton hotel from the L.A. Live project now in development downtown. Looks like a Marriot Marquis (with a more elite Ritz-Carlton on the upper floors) will bloom above the hole in the earth across from Staples Center at Olympic and Figueroa. Andy Fixmer reports on the Los Angeles Business Journal website that Anschutz Entertainment Group CEO Tim Leiweke let the news slip at a meeting in New York.

Leiweke told the group AEG is switching operators of the hotel, but said the identity of the new operator would be announced at a press conference in two weeks. However, during a slide show to the group, a rendering of the convention center hotel contained the Marriott and Ritz Carlton flags, according to the source at the meeting.

When Leiweke realized what happened, according to the source at the meeting, Leiweke said, “Oh well, I guess the cat’s out of the bag now” and continued on with the presentation, which included an overview of the company’s L.A. Live project.

Fixmer reports the change was pushed by KB Homes, which plans to develop 200+ condos in the 52-story tower and reportedly believes they would fetch a higher price with a Ritz-Carlton and Marriott in the building. Hilton confirmed for the LABJ that they are out of the picture.