Yes
The answer is YES. Yes, please advise guests if there is a group inhouse that may be somewhat "out of the norm".
I am a hotel manager, and have seen this come up:
- "Dressing for Pleasure", held in a hotel in New Jersey. Most of the hotel was associated with the group, and WOW, were there some sights! Unfortunately, the sheer volume and wild nature of the group made several non-group guests very angry, which resulted in quite a few complaints to the home office, and therefore comps. The hotel didn't forewarn the non-group guests.
- Gay Rodeo, held in San Diego: This hotel did a great job advising guests upon reservation, and again at check in. Again, lots of unusual sights, but this time, no guest complaints; they had the option of passing.