NEW YORK—Merchants Hospitality has signed a contract to take over the long-term lease for The Out Hotel for $40 million. The 105-room hotel, located at 510 W. 42nd St., has experienced a decline in occupancy and revenue, according to the New York Post.
The hotel was designed and created in 2009 by Ian Reisner’s Parkview Developers as the city’s first gay-themed hotel. Merchants plans to bring in a premier nightclub and reposition the hotel’s restaurants with celebrity chefs and lounge operators.
Leased by Chief Executive Abraham Merchant, Merchants Hospitality now intends to raise another boutique flag at the hotel, according to the New York Post.