Famed Hollywood madam Heidi Fleiss is set to take the reins of her pal Dennis Hof's brothel empire after his shocking death, Breaking Celebrity News has exclusively learned.

And poignantly, Fleiss told Breaking Celebrity News she helped Hof celebrate his 72nd birthday just hours before he passed away.

In the Wednesday interview, Fleiss revealed that she'll be taking over one of Hof's brothels in Pahrump, Nevada, and she plans to recruit transgender prostitutes and call it Xanadu!

"I'm going to do the transgender brothel, in one of the buildings he owned," Fleiss explained to Breaking Celebrity News. "For me, those brothels in Pahrump are easy. I did the deal for him when he bought them.

"The transgenders I know are really hot, hotter than girls. You wouldn't be able to tell the difference. It's the time for that. Nevada may not have been initially receptive but they have to be they can't discriminate. I'm going to call is Xanadu because that sounds kind of mixed gender."

Fleiss said, "I've been talking about opening it with Dennis for the last few months. We could be in business within a month, but I don't know if it will be complicated by his death. I'm sitting down with Dennis' CFO this week."

Fleiss said she was with her close friend Hof to celebrate his birthday on Sunday.

He was found dead on Tuesday at the Love Ranch South brothel in Crystal, NV.

The Nevada-based mogul owned seven legal brothels in the state of Nevada, but Hof was best known for owning the Love Ranch, where Khloe Kardashian's ex-husband Lamar Odom nearly died in 2015.

[expletive] star Ron Jeremy told Breaking Celebrity News that Hof had a "wild night of sex" with a "sexy Latin girl" before he found his friend unresponsive on October 16. Hof had apparently died in his sleep.

Jeremy had helped Hof celebrate his birthday, and so had Fleiss.

"On Sunday, I went up to Carson City and surprised him. He was in shock when I showed up, he was so happy," Fleiss, 52, told Breaking Celebrity News.

"We spent the day together and it was nice. We had quite a few hours alone, then he had a pool party which started at 1 a.m., but I didn't go to it.

"Everything was good until he stood up to walk, and then I really saw he wasn't walking well, you could just tell he wasn't well," recalled Fleiss, known for running a Los Angeles prostitution ring and once being the madam for such celebrity clients as Charlie Sheen.

"With Dennis, I can't say I didn't see his death coming, because of his diabetes. I loved him so much. He was a real friend. Especially to someone like me, a convicted felon and a drug addict with a crazy reputation, yet he couldn't have been a better friend," said Fleiss, who served 20 months in prison on