The Out Hotel, New York’s first gay-consumer-focused resort, has been bought out of its lease by Merchants Hospitality (soon-to-be Cachet Hospitality Group) for $40 million. Reports indicate that the hotel has suffered from declining business (especially within the LGBT community after owner Mati Weiderpass and Ian Reisner held a fundraiser for Ted Cruz). The 105-room property on 42nd street that includes 7,500 square feet of restaurants and common spaces and a 14,000-square-foot nightclub, will now be transformed into the Playboy Supper Club (talk about a 180).

“Part of the brilliance of Playboy is that their brand is really special,” Cachet president of operations Meredith Gelacek told Community Board 4’s Business Licenses and Permits committee Tuesday. “We will have [Playboy] Bunnies, but the reality is we are going to have a world-class restaurant, and we are going to serve incredible food, [and] it’s going to be incredible service,” she added, according to DNA.