The Rrazz Room says it -- and African Americans -- are discriminated against by the Hotel Nikko.
The cabaret's lease with the hotel is not being renewed, and the Rrazz Room's owners say it's because the cabaret attracts too many black people, according to a lawsuit on file at San Francisco Superior Court.
The 190-seat club has hosted jazz, R&B and other performers since 2008, and is seeking at least $1 million, according to the San Francisco Chronicle.
The hotel denied denying the club a lease extension because of the "demographic" it was attracting, instead claiming that the decision not to renew the lease was based on "economics," the newspaper reported.
The club's last night is New Year's Eve, the newspaper reported.