01/24/2011 AT 12:25 PM ET
Andre Balazs appears to have earned five stars from Chelsea Handler.
The comedian and E! talk-show host kept warm with the hotelier at the Sundance Film Festival in Park City, Utah, this weekend – even with her previously rumored love interest, 50 Cent, in town performing.
On Saturday night, Handler, 35, and Balazs, 53, caught the Florence + The Machine show at Bing Bar. “They were making out in the corner of the dance floor upstairs,” says a source.
They continued their smooch fest at Tao at the Samsung Galaxy Tab Lift, where they held hands and got cozy. “They were very touchy-feely, both laughing and really happy. They looked totally smitten,” says an onlooker.
But it wasn’t a one-night only thing for this new duo: On Sunday, they enjoyed dinner at 350 Main Brasserie with a pal. “They were giggling throughout the entire dinner,” says a fellow diner.
Adds a source: “They’re heading back to L.A. together.”