Selena Gomez and the Weeknd 'Look Very Happy' on Date Night with Friends

"They had a blast with their friends," a source tells PEOPLE of Gomez and the Weeknd's date night

*PREMIUM EXCLUSIVE* Selena Gomez and The Weeknd leave Dave and Buster's Date Night **WEB EMBARGO UNTIL 9:30AM PST ON 01/27/17**
Photo: AKM-GSI

Selena Gomez and the Weeknd have made their romance known.

The couple rented out Hollywood & Highland’s Dave & Buster’s venue in Los Angeles, and stayed until 3 a.m. after arriving together at 11 p.m.

“They looked very happy. They had a blast with their friends,” a source tells PEOPLE about the pair, who were spotted holding hands.

Gomez, 24, was dressed in an oversized denim jacket, black crop top and wide-leg dungarees while the Weeknd (né Abel Tesfaye) opted for a “Starboy” long sleeve, black pants and gold jacket.

Joining them at the fun-filled event were French Montana and Jaden Smith.

The pair were photographed leaving together in his Bentley.

https://www.instagram.com/p/BPuL68oFymA/?taken-by=frenchmontana

https://www.instagram.com/p/BPuhoErDo8u/?taken-by=visionelie

https://www.instagram.com/p/BPvUfPUBBs3/?taken-by=theweeknd

Romance rumors were first fueled earlier this month when Gomez and the Weeknd were spotted having a romantic dinner at celebrity hotspot Giorgio Baldi, where they were pictured smooching throughout the evening.

It’s the first romance for the “Party Monster” hitmaker since he and ex-girlfriend Bella Hadid split in November after a year and a half together.

Gomez — who recently took a career hiatus to seek treatment for emotional complications stemming from her lupus diagnosis — last had a high-profile on-again, off-again relationship with Justin Bieber.

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