We report on photoluminescence and optical gain measurements of highly excited GaN crystals grown by hydride vapor physe epitaxy (HVPE). Inelastic scattering processes of excitons dominate the spontaneous emission spectrum under high excitation up to temperatures of 180 K. Towards room temperature phonon-assisted recombination of excitons and free carriers begins to dominate the spectrum. Similar characteristics are observed in temperature-dependent gain measurements.