Ace Frehley recorded the song for his solo album released in 1978. Frehley, like the other then-current members of Kiss, recorded and released a solo album. Released as a single, this song made it to No.13 on the American Billboard Hot 100 that year, by far the highest charting single from any of the Kiss members' solo albums. "New York Groove" was performed on Kiss's tours of 1979 and 1980, and became a staple of Frehley's shows during his solo tours in the 1980s and 90s, and again during the Reunion Tour when he rejoined Kiss in 1996.

A live version of the song can be found on the Japanese version of the 1996 album You Wanted the Best, You Got the Best!! (and the U.S. vinyl version) recorded in Sydney, Australia in 1980 which would also make it one of the few live recordings released by the group to feature long time drummer Eric Carr. Ace Frehley once told Rolling Stone magazine that his unique take on the song was inspired by his experience with hookers in New York City's pre-Rudy Giuliani Times Square.

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