Spotted this post on the official The Longest Journey forums:

very very sorry if this has been asked before - i've done a search and found nothing, so here goes:

In the Mercury Theatre, what movie is the background dialogue taken from?

i'm not old enough to know for myself, but damn if that moment - the scene where cortez is watching the movie and april's standing in the shadow near the door, and the man in the movie's saying "There's no way out of Victory Hotel." - wasn't one of the coolest in the game. i'd like some idea of what that movie's about, if anyone knows. although just the title would also be much appreciated. thanks in advance.

Contrary to what many think, the scene was not stolen from "Last Year at Marienbad", "No Way Out", or any other existing movie. It is, in fact, a scene from an entirely fictional film entitled "Victory Hotel", and I wrote the dialogue. In fact, I also played one of the characters - the other guy was voiced by Bjørn Arve Lagim, the audio director. So there you go.

...and yes, the dialogue does relate to the game, so listen carefully...  ¶ 12:43