Financing Deal Facilitates Hotel Rebranding, 'Bunnies' Return to NYC

A rendering of the Cachet Boutique New York Hotel that will include a new Playboy Club.

NEW YORK CITY—A $30.4-million financing deal has closed for the rebranding of the Out Hotel in Midtown. The purchase will foster the rebranding of the hotel into the future Cachet Boutique New York Hotel this spring and the return after more than three decades of the Playboy Club to New York City.

Silver Arch Capital Partners reports borrower Merchants Hospitality, Inc., has entered a partnership with hotel and restaurant branding company China-based Cachet Hospitality Group to transform the 105-room, three-story Out Hotel located in Hell’s Kitchen into the future Cachet Boutique New York hotel. Also, Playboy Enterprises, Inc. has partnered with global hotel entity Cachet to construct a Playboy Club franchise location on the property’s ground floor.