Deka Immobilien draws a line under years of legal turmoil at W Amsterdam with new Corendon lease deal

Deka Immobilien has signed a long-term lease agreement with Corendon Hotels & Resorts for the operation of the five-star W Amsterdam, bringing to a close one of the most closely watched operator disputes in European hotel real estate in recent years. The 238-room property, which includes 66 suites, a spa and two restaurants across two listed historic buildings directly adjacent to Dam Square and the Royal Palace, will continue to trade under the W Hotels brand, part of Marriott International's global portfolio.

The backstory will concentrate the minds of every institutional hotel landlord in Europe. Deka acquired the property in 2017 for €260m from the Sircle Group's founder in a sale-and-leaseback arrangement, with Palace Hotel Operational, part of Amsterdam-based Sircle Collection, retained as tenant and operator. Trouble began during the Covid-19 pandemic: Palace Hotel successfully sought a rent reduction in 2020 for forced-closure periods, with monthly rents at that stage ranging from around €580,000 rising to €833,000. When trading resumed, a dispute arose over whether those pandemic reductions were a permanent discount or deferred payments owed. By 2023, Palace Hotel had stopped paying its annual rent of €10m entirely, citing lingering pandemic impacts, a defence the Amsterdam court ultimately rejected.

By the time Deka launched legal proceedings, the accumulated rent arrears had reached over €23m, excluding interest and penalties. On 24 February 2026, an Amsterdam court ordered Palace Hotel to vacate the premises within two weeks and cooperate with a managed handover. Palace Hotel acknowledged the ruling and agreed to comply. The ruling also put a spotlight on alleged payment shortfalls at other Deka-owned properties operated by the Sircle group, including Sir Albert Hotel in Amsterdam and Park Centraal in The Hague, which remain the subject of separate legal proceedings. For investors, the episode underscores a structural risk in hotel real estate that is often underpriced: the concentration of operational and financial risk in a single lease counterparty, particularly one whose business model was exposed to pandemic-era shocks, and the lengthy timeline and cost of enforcing lease obligations through the courts.

With Corendon now confirmed as operator, Deka has secured continuity of the W brand and the Marriott franchise relationship, both of which were under implicit threat during the dispute. Losing the W Hotels franchise would have significantly impaired the asset's value and marketability. Corendon Hotels & Resorts, part of the broader Corendon Group with a portfolio spanning the Netherlands, Turkey and Curacao, already operates several Marriott-affiliated properties, including its flagship Tribute Portfolio hotels near Schiphol and The College Hotel in Amsterdam's museum quarter, making it a natural franchise fit. The restaurants within the hotel, including Mr Porter, The Duchess and The Butcher, will continue to operate independently under The Entourage Group on existing long-term agreements, preserving the property's food and beverage identity.

The W Amsterdam has been part of the Deka-ImmobilienGlobal open-ended real estate fund since its acquisition in 2017. The hotel occupies two listed buildings, originally the Royal Dutch Post's main communications centre and the former KAS Bank headquarters, which were converted into the hotel in 2015. DekaBank, the securities services arm of the German Savings Banks Finance Group, oversees more than €50bn in real estate assets under management across its Real Estate Division, with a hotel portfolio of more than 75 properties valued at over €4bn.