Amsterdam W Hotel operator removed over €22.8 million rent debt

The operator of the W Hotel on Spuistraat in Amsterdam has been removed from the property after falling behind on rent totaling more than 22.8 million euros, a court ruled Tuesday. The hotel itself remains open under the W brand.

The German real estate fund Deka, owner of the two buildings housing the W Hotel, filed the case in a summary proceeding. The court ordered Palace Hotel Operational, part of Amsterdam-based Sircle Hotels—which also manages the Sir Hotels—to vacate the premises and cooperate with a smooth transfer within two weeks, Het Parool reported.

Palace Hotel had previously fought Deka in court over a rent dispute during the COVID-19 pandemic. In 2020, the operator successfully sought a rent reduction for the periods the hotel had to close. After the pandemic, disagreements arose over whether the payments in question were a rent discount or overdue rent that had to be repaid.

In 2023, Palace Hotel effectively stopped paying its annual rent of 12 million euros, citing lingering COVID-19 impacts. The court rejected that defense. Palace Hotel acknowledged the ruling and agreed to comply with the handover.

Deka and Marriott, which owns the W brand, will now seek a new operator. The transition affects not only the hotel rooms but also affiliated restaurants and bars, including The Duchess, Mr. Porter, and The Butcher, operated under Entourage, linked to Sircle Hotels.

Deka indicated the group also has outstanding payments at other hotels, which are the subject of separate lawsuits.