A high-profile Hell’s Kitchen hotel site with a history of reinvention — from LGBTQ+ landmark to scandal-plagued nightclub — is once again up for grabs.
Hudson Yards Hotel on W42nd Street could be sold. Photo: Phil O’Brien
A ground lease tied to the Hudson Yards Hotel at 510 W42nd Street — once known as The OUT NYC — has been listed for sale with a $17 million asking price, according to CoStar News, which first reported the story.
The 105-room property, marketed by Muroff Hospitality Group, sits between 10th and 11th Avenues in Hell’s Kitchen. Broker Mitch Muroff told CoStar that the offering represents a “rare bargain in the high-demand Manhattan hotel market,” citing the chance for redevelopment into a potential “urban resort” or even a mixed-use tower valued at over $1 billion under certain scenarios.
“A prospective buyer may be interested in owning and operating the restaurant and nightclub and the hotel,” Muroff said. “It would open the opportunity to have a truly urban resort.”
According to the offering memorandum, the lease has 34 years remaining with possible extension rights, and includes the hotel, a vacant 5,000-square-foot restaurant and a 10,000-square-foot nightlife space. The document describes the property as “turnkey ready” following recent renovations, highlighting its proximity to Times Square, Hudson Yards and the Javits Center, and positioning it as a prime candidate for Hyatt’s new Unscripted boutique brand — though no contract has been signed. The building itself is owned by Richard Born, who also owns the Skyline Hotel and Travel Inn nearby, and who granted the master lease to Ian Reisner.
“Active lease negotiations are underway with both a restaurant group and a nightlife operator,” the brochure notes, adding that the Hyatt affiliation “would offer access to Hyatt’s global reservation network and brand reach, expected to drive occupancy and revenue per room.”
The W42nd Street property has had many identities. When it opened as The OUT NYC in 2012, it billed itself as “New York’s first urban gay resort” — with a restaurant (KTCHN) and nightclub (XL) that quickly became fixtures of the local LGBTQ+ scene. But the business collapsed in 2016 after owners Ian Reisner and Mati Weiderpass hosted a fundraiser for anti-gay presidential candidate Ted Cruz, sparking a community boycott that emptied the venue.
The line for a drag show at XL nightclub in October 2014 outside OUT Hotel and KTCHN restaurant. Photo: Phil O’Brien
Reisner reemerged last year, saying at the time he planned to relaunch the property as a “gay hotel where straight friends and family are welcome too.” Instead, the site’s next act — a short-lived, unlicensed club called Baby’s — became the focus of multiple lawsuits, city nuisance actions, and a shooting incident in December 2024.
As W42ST reported in April, Baby’s generated over $1.6 million in revenue in just four months before being shut down by court order. Reisner alleged that operator Maureen “Baby” Lupo ran the club illegally and without a liquor license, while she countered that he was attempting to seize control of a profitable venue. Court records show this action as ongoing.
In the sales materials, Muroff positions the hotel as sitting “at the intersection of two of New York’s most powerful demand generators — the Hudson Yards corporate campus and the Broadway theater district.” The brochure highlights development rights of up to 310,000 buildable square feet, citing a CBRE appraisal valuing the property between $15 million “as is” and $1.17 billion under full redevelopment with air rights.
We reached out to Mitch Muroff and Ian Reisner for comment, but we did not receive answers to our emailed questions at the time of publication.
The many iterations of 510 W42nd Street — Eden Local, The Playboy Club, XL, Treadwell Park, Baby’s, Cachet Boutique Hotel and 42 D’Or. Photos: Phil O’Brien
Over the past decade, 510 W42nd Street has seen more reinventions than a Broadway revival. It’s been the glossy Cachet Hotel, home to the short-lived restaurant Eden Local and beer hall Treadwell Park, and even flirted with high-end hedonism as the Playboy Club and 42 D’Or nightclub. Each new era promised a fresh start — now neighbors are left asking, what’s next for this restless West Side spot?