The Ivy Hotel, which also features scantily clad waitresses and bottles of wine for $500 to $600, could put a dent in San Diego's self-described reputation as "America's Finest City," the Los Angeles Times reported.

"We wanted something a little voyeuristic, a little seductive," said Michael Kelly, the Ivy's co-owner who has made his fortune buying and selling depressed assets. "It's an adult playground, but it's not cheap."

Julie Albright, who teaches classes on human sexuality and social psychology at the University of Southern California, told the Times that places like the Ivy are becoming more common.

"It's the pornification of mainstream society," she said. "There's more overt sexuality in our media, on television. More people have cable TV. More people are on the Internet."

Examples of more racy places to eat and entertain include a California sushi bar where one can order a "threesome roll" or ahi tuna served on a naked model draped in banana leaves. The sushi experience can cost upward of $2,100.