The city's Port Authority considered demolishing the building, but instead decided to repair it, reinforcing its structure.

In 2001, it was mostly destroyed by the collapse of the World Trade Center's Twin Towers during the September 11 attacks by al-Qaeda.

The hotel was not replaced as part of the new World Trade Center complex, although its address was reused for the tower at 175 Greenwich Street.

[6] On the 22nd floor, there was a gym that was the largest of any hotel in New York City at the time, with a swimming pool and a running track with views of the Hudson River and the Austin J. Tobin Plaza.

[7] In 1989, the Port Authority of New York and New Jersey bought the leasehold from Kuo for $78 million, but the operating rights remained in the hands of Hilton International as management agent.

[21] At 12:18 p.m. (EDT), the explosion destroyed or seriously damaged the lower- and sub-levels of the World Trade Center complex.

[20] The Marriott Financial Center, a hotel located two blocks west,[22] served as press conference area and a command post for the law enforcement response.

Reinforcements to the hotel's structure, including the installation of "the largest steel beam ever put in a building to that point".

[32] The National Association for Business Economics (NABE) was holding its yearly conference at the hotel from September 8 to 11, 2001.

[39] Firefighters reported human remains and corpses on the roof, from people who fell or jumped from the south face of the North Tower.

[32] United Airlines Flight 175 crashed into the South Tower (2 WTC) at 9:03 a.m.[28][32] Some fire companies evacuated guests that were on the upper floors, being followed by elevator mechanic Robert Graff and two employees with master keys:[32] Joseph Keller, the hotel's executive housekeeper, and Abdul Malahi, an audiovisual technician assisting with the law school forum who was the only civilian Arab that died on 9/11.

[23] Fetter attempted to get a new version of the hotel registry, but their computer system had shut down, so he found the most recently-printed copy and a set of emergency phone numbers.

The people in the lobby moved away from the North Tower, walking south through the hotel, until they reached the Tall Ships Bar and Grill, which opened onto Liberty Street.

[23][24] The collapse of the South Tower at 9:59 a.m. crushed the middle of the building, creating a large gap that nearly split the hotel in half.

[9][32][41] The lobby was filled with debris,[32] but nonetheless acted as a shield for firemen, police, and hotel staff, due to its reinforcements after the bombing.

[32] The collapse of the North Tower at 10:28 destroyed the rest of the hotel, aside from a small section surrounding the southern stairwell.

[21] There were 14 survivors trapped in this section, on the 2nd floor; this included 13 firemen from Company 74 and hotel guest Frank Razzano, who had evacuated from his 19th-floor room.

The group found a hole in the building, and threaded either a rug or drape through it, then climbed down onto a pile of debris.

[citation needed] The Marriott Corporation was then offered an opportunity to rebuild the hotel in the same location within the World Trade Center site, as its lease which was signed until 2094 had not expired.

[48] A Marriott flag that was found in the rubble in December was displayed in a glass case for the next few months, honoring the hotel's employees with the plaque: "Our Spirit to Serve From sacrifice .

A photo of the firetruck, crossing the Brooklyn Bridge to get to the World Trade Center after the second plane crash, became an iconic image of 9/11.

[44][49] Pete Davidson loosely based the 2020 film The King of Staten Island on his father's service on 9/11.

[50] The building and its survivors were featured in the television special documentary film Hotel Ground Zero, which premiered on September 11, 2009, on the History Channel.

[35] In 2013, there was charity run in the area to honor Ruben Correa, a firefighter who died as a part of the group on the 21st floor.