Habbo Palooza is a Habbo music festival that takes place in the summer, first launched in the summer of 2013. It consists of various games and activities put together by staff and organised by users. The users consist of a team of hand picked event planners that got chosen because of their great event ideas. The festival also includes Celebrity visits from various celebrities/groups that get hired to appear in-game.
Habbo Palooza was thought of by Habbo Staff in early 2013 and it was put into production within the months following. The events portion of it was helped to be planned by a team of 15 Habbo users. These users were branded event planners and got chosen because they submitted events that Habbo Staff thought would be OK to host. The festival itself consists of various events that are hosted by a combination of Habbo Staff and the event planners. The events are hosted at various set times and usually (not always) last for at least 1 hour each. The festival also has celebrity visits that are planned in advance.
Due to it being a music festival, music related celebrity visits are planned. In 2013 Habbo was visited by Room 94, and along with that, there was also a room building competition to see who would host the Room 94 visit.  Users had to build their best stages and Habbo Staff would go around and judge them to see which were the best to host the visit. Also, two lucky users were chosen to attend a live Google Plus hangout with the Backstreet boys. This however was only available to residents of London. Sara and Tegan also stopped by on Habbo.COM and Habbo.COM.BR to have a little Q&A with users who asked their questions in the Main Stage room.
An official festival room was released by Habbo Staff powertoo for the 2013 Habbo Palooza. It contained (at the time of release) unreleased stage/vending machine furniture. It also had a custom background for the room and it contained information for that years annual Habbo Palooza.
Later on though, many other rooms were released. They consisted of: Camping Grounds, where users could rent space and camp out waiting for the celebrity visits, and Merchandising Rooms. Where users could go and see the rares that were going to be released for Habbo Palooza.
A competition was put out by Habbo Staff to try and get the best event ideas from users of Habbo. The best few ideas were chosen and the people who contributed them were given the ability to help make the rooms and host the events with staff. The users were also given event planner badges.
Attend a Live Google+ Hangout with The Backstreet Boys
For the festival and because they were coming as a celebrity visit, 2 lucky Habbos got the opportunity to attend a live Google+ Hangout session with the Backstreet Boys. This competition was available exclusively to users who lived in London, and they had to provide all of their contact details to Habbo. The users who won the competition are:
Music Submission Competition
A competition was put out by Habbo to allow all players of all hotels to submit a video which shows themselves or someone they know, performing a song that is completely original, is catchy, and has no vulgar language. The winners of it gets to have their video be broadcast in the Main Stage room and allows thousands of teens to listen to it.
Finalists From Each Hotel
- Trapaceada - Habbo.BR
- M0n573r - Habbo.IT
- Brocken1504 - Habbo.DE
- Risoliogh - Habbo.FR
- DJay - Habbo.COM
- !!Leo11 - Habbo.SE
- niklas293 - Habbo.DK
- RawsonBallin - Habbo.NL
- Verseker - Habbo.ES
The winner of the competition was DJay of Habbo.COM with his band Lazarus.
Here is their video:
The original winner of the competition was Risoliogh of Habbo.FR, but a team of panelists in charge of the competition saw that his music included too many samples of other songs in it, deeming it more of a cover than an original song. The official quote from the Habbo Palooza website was:
“Unfortunately, we think the French entry exceeded the limits of using samples in their song, which is why we consider it a cover rather than an original piece. This forces us to disqualify the song from Habbo.fr” 
A new line of furniture, some new rares, and a Limited Edition furniture was released for Habbo Palooza 2013.
The Tents furni line was released on June 27, 2013. It consists of 11 new furni that are all camping related to coincide with the festival part of Habbo Palooza which imply's outdoors to enjoy live concerts. The Tent furniture themselves also have a new feature, any user outside of the tent cannot see any chat going on inside of the tent. This allows for more privacy in public rooms.
The Festival furni line was released on July 5, 2013. It consists of 31 new furni that are all stage related/festival related. It coincides with the music part of Habbo Palooza, as users can use the furni to make stages for performances.
Habbo Palooza Rares
There are 3 rares that were released for Habbo Palooza. They all were released for 8 hours and cost 25c to buy. When you bought each one, you got a badge.
The following rares were released:
Limited Edition Furni
The Palooza Kiosk was released as a Limited Edition furni. It was released on June 30, 2013, for 240 Credits and only 180 were sold.
http://palooza.habbo.com/, A website was launched by Habbo, was released to advertise Habbo Palooza and to inform about events that were planned to take place. It also wrote who won the competitions that were included with the music related quests.