W Hotel Amsterdam 2026: Luxury Hotel Faces Eviction Over €23.4 Million Rent Arrears

What is the W Hotel Amsterdam Eviction Crisis?

The prestigious W Hotel in Amsterdam's city center faces imminent eviction after accumulating a staggering €23.4 million in rent arrears over three years. This luxury hotel, located adjacent to Dam Square in a historic former PTT building, has become the center of a major legal battle between German real estate investor Deka and the hotel's operator, Palace Hotel, part of the Amsterdam-based Sircle Collection. The situation represents one of the most significant hospitality industry crises in the Netherlands in recent years, highlighting the complex financial pressures facing European luxury hotel markets even as tourism rebounds.

Background: The Complex Ownership Structure

The W Hotel Amsterdam operates under a complicated ownership and management structure that has contributed to the current crisis. The W brand is owned by U.S.-based Marriott International, which licenses the brand to operators worldwide. In Amsterdam, the hotel is operated by Palace Hotel, which falls under the Sircle Collection hotel group founded by Israeli entrepreneur Liran Wizman. Wizman has been active in Amsterdam's hospitality sector for over two decades and also owns The Entourage Group, which operates multiple restaurants and bars in various hotels.

The property itself was acquired by German real estate investment firm Deka through a sale-and-leaseback arrangement. Under this structure, Deka purchased the hotel and leased it back to the operator for approximately €10 million annually. This type of arrangement is common in the hotel industry but has proven problematic in this case, with the operator failing to make payments since March 2023.

The Financial Breakdown

The rent arrears have grown at an alarming rate of approximately €1 million per month, including interest and penalties. According to court documents, the total debt reached €23.4 million by February 2026. FD journalist Gerben van der Marel, who broke the story, noted: 'Deka is normally quite conservative and wouldn't quickly go to court, but the situation has become truly untenable. The monthly rent of €1 million causes the debt to increase substantially each month.'

The hotel occupies two historic buildings: the original former PTT building and the adjacent former Kas Bank building, which was added in 2017, just one year after the hotel's 2016 opening. This expansion created a premium hospitality complex in one of Amsterdam's most prestigious locations.

Legal Action and Potential Consequences

Deka has taken the unprecedented step of filing for an emergency eviction order through summary proceedings. This legal action represents a significant escalation, as German institutional investors typically prefer negotiated settlements over court battles. The real estate firm has requested expedited handling of the case, citing the 'untenable' nature of the accumulating debt.

If the eviction proceeds, it would mark one of the largest hotel closures in Amsterdam's recent history. The W Hotel Amsterdam features 238 rooms, multiple restaurants and bars, a spa, and extensive event facilities. Its closure would have ripple effects throughout the local hospitality ecosystem, affecting approximately 200 employees and numerous suppliers.

Broader Market Context

This crisis occurs against the backdrop of Amsterdam's constrained hotel market. The city has implemented strict 'Tourism in Balance' policies that cap tourist overnight stays at 20 million annually and prohibit new hotel construction unless an existing hotel of equivalent size closes. This has created a fixed supply of approximately 49,600 rooms with virtually no net growth, leading to high occupancy rates (75.7% in 2024) and strong pricing power.

However, the market also faces challenges including Amsterdam's 12.5% tourist tax (among Europe's highest), potential VAT increases from 9% to 21% in 2026, and rising operational costs. These factors have created a challenging environment for hotel operators, particularly those with high fixed costs like the W Hotel's €10 million annual rent obligation.

Impact on Amsterdam's Hospitality Industry

The W Hotel Amsterdam crisis has significant implications for the city's hospitality sector. As one of Amsterdam's most prestigious hotels, its potential closure would:

• Remove 238 luxury rooms from a supply-constrained market
• Affect approximately 200 direct employees and numerous indirect jobs
• Impact the prestige of Amsterdam's luxury hotel offerings
• Potentially affect investor confidence in Amsterdam's hotel real estate market
• Create uncertainty for other hotels operating under similar sale-and-leaseback arrangements

The situation also highlights the risks associated with sale-and-leaseback financing models in the hospitality industry, particularly when combined with high fixed costs and market volatility.

What Happens Next?

The court is expected to rule on Deka's eviction request in the coming weeks. Several potential outcomes exist:

1. Eviction and closure: The hotel could be forcibly closed and the property returned to Deka, who would then need to find a new operator.
2. Negotiated settlement: The parties could reach a restructuring agreement, potentially involving debt forgiveness, payment plans, or ownership changes.
3. New operator: Another hotel group could take over operations, possibly under a different brand.
4. Property repurposing: The historic buildings could be converted to alternative uses, though this would require significant investment and regulatory approval.

Industry experts suggest that the most likely outcome involves a negotiated settlement or new operator, given the property's prime location and the challenges of finding alternative uses for such distinctive buildings.

FAQ: W Hotel Amsterdam Eviction Crisis

How much does the W Hotel Amsterdam owe in rent?

The hotel has accumulated €23.4 million in rent arrears, including interest and penalties, over three years of non-payment.

Who owns the W Hotel Amsterdam?

The property is owned by German real estate investor Deka, while the W brand is owned by Marriott International. Operations are managed by Palace Hotel, part of the Sircle Collection founded by Liran Wizman.

When did the rent payments stop?

According to court documents, the hotel stopped making rent payments in March 2023, though some reports suggest non-payment may have begun earlier.

What is a sale-and-leaseback arrangement?

This is a financing structure where a property owner sells the real estate to an investor then leases it back, allowing the operator to access capital while maintaining use of the property. The W Hotel Amsterdam operates under such an arrangement with Deka.

How will this affect Amsterdam's hotel market?

The potential closure of 238 luxury rooms in a supply-constrained market could increase occupancy and room rates at competing properties, while potentially affecting investor confidence in Amsterdam's hospitality real estate market.

Sources

NL Times: W Hotel Amsterdam Faces Possible Eviction
Amsterdam Hospitality Market Analysis
Sircle Collection: Liran Wizman Profile
Marriott Business Model Analysis