It will be a hotel ...
SO it's not going to be a hotel anymore? i really hope so.
The hotel idea has always included the idea of keeping the auditorium of the theater intact. It's just that the support facilities for using it as a full-fledged theater don't seem to have been (or be) included in any of the different restoration plans, so the auditorium has been variously described as reserved for use as a 'ballroom' or bar/restaurant (maybe on the lines of the old Circus and now the Music Hall).
There are a few things that may mitigate against restoring it exclusively as a theater. One is that the building was originally mixed use anyway, and along with shops
did originally include a hotel (of course, if the original building included a small but fully functional theater, the restored version could too...). Another may be (as Solidere argues) that the theater is too small for use as a true concert hall, and perhaps the expense of restoring it for smaller events is not commercially plausible. In today's environment, we are always hearing how difficult it is for orchestras and theaters even in countries with long-established musical and dramatic cultural traditions.
Very frustrating, but one way of looking at it could be that, given the daunting economics, maybe this is a way to keep it mostly intact, so that one day in the future, if and when the country has peace and prosperity, and people have time for the arts, it can be re-purposed.
http://www.anouskahempeldesign.com/hotels/beirut/