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.

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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