The Hotel Denouement fire occurs in Chapter 13 of The Penultimate Peril.


It happens on a Wednesday afternoon when Sunny suggests to burn down the hotel as a way to keep it's occupants from getting infected with the Medusoid Mycelium. It is used by the Baudelaire children in order to signal to Kit Snicket and other volunteers who will be "watching the skies" that the Hotel Denouement is no longer safe.

Count Olaf started the fire in the Laundry Room of the hotel, using the dirty laundry sheets and Jerome Squalor's book Odious Lusting After Finance as kindling.