Forty-eight people who have made reservations at the Ambassador Hotel for Commencement Week will have to seek rooms elsewhere in Boston and Cambridge, the hotel has announced. The Ambassador cancelled the reservations as a result of its purchase by the University last week.

The University commented after buying the hotel on Wednesday that it was not "equipped to handle the day-to-day operation of a hotel." The management of the Ambassador immediately terminated its transient room service and refunded the deposits of all those who had made reservations after May 1.

Since then, the Ambassador has referred its clients to the Commander Hotel, which is under the same management. The Commander, however, is already booked up for Commencement Week as are all other hotels in Cambridge.

At present, the only available hotel space in the area is in Boston. The Statler-Hilton is now "only partially filled", but is reported to be running out of rooms for Commencement Week quite rapidly.

The University has not yet made definite plans for the removal of the occupants of the Ambassador's permanent residential units. According to present plans they will be moved out by 1966, when the Massachusetts Avenue section of the Holyoke enter will be completed.

The University paid $1,375,000 for the Hotel, in a move to solve the problem of relocating Dudley and Little Halls, which are being demolished to make way for construction of the second half of Holyoke Center. Department offices now in Little Hall will move into the second, third, and fourth floors of the hotel this summer.