To become more inclusive, The Out Hotel is being sold to Merchants Hospitality and will likely change its name.
Sources said as more gays feel welcome at other hotels, the hotel has experienced declining occupancy and revenues — despite special events that have included recent concerts by Barbra Streisand and Cyndi Lauper. Instead of more “kinky boots,” the hotel will get a reboot to keep it going.
Merchants signed an approximately $40 million contract earlier this month to take over the long-term lease for The Out, which sits on land owned by Richard Born on the far western end of The Deuce at 510 W. 42nd St. between Times Square and Hudson Yards.
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