Merchants Hospitality bought the long-term lease on the famed Out Hotel near Times Square for $40 million and plans to put an end to its days as a gay-themed hotel. The 105-room property at 510 West 42nd Street, developed in 2009 by Ian Reisner’s Parkview Developers, includes 7,500 square feet of restaurant and common space and a 14,000-square-foot nightclub. According to the New York Post, the hotel has been battling declining occupancy and revenues.