Truth be told I've never been there, I got my information from those who were negotiating with the owners for the possibility and they were looking to take everything out anyway and turn it into a big bar. But even if you find a place that was once a hotel, you'll have to strip out what's there and replace the decor, floors, repaint, etc, anyway. With a different kind of construction than brick walls (if you were to rip out what's there), something like wallboard and metal or wood studs and sound-proofing insulation inside, the rooms probably wouldn't be that big of a problem. There is also the issues with amenities like tubs or showers in the rooms, etc.
But as far as a bar - I don't know which floor it was located on, but imagine the business you'd have with a group of young folk getting drunk downstairs, hooking up and renting a room for an hour or so, and coming back down to spend more money on beer. During the day people can meet to have a drink, break the ice, and move on upstairs.
Truth is, it seems to me the best money-making business here (as I've seen it properly done by a couple of expats) is to provide cheap beer, and lots of it.
I think the big problem with the swinger's club was that it was a swinger's club, probably not done correctly from what I've heard, and as you say, Ceviche, they were probably charging way too much.
BTW - you can see the dancing cage with the bar that was there, relocated to the Alamo Palermo...the young sex- and alcohol-crazed of Argentinas love to take it for a spin
