Royal Orchid Hotel (Thailand) Public Company Limited (SET: ROH) has issued an official statement to the Stock Exchange of Thailand (SET) clarifying its position regarding the repurchase of the Royal Orchid Sheraton Riverside Hotel Bangkok. The statement serves as a counter-clarification to an earlier notification by ONE Asset Management Company Limited (ONEAM), the manager of the Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition (SET: GROREIT).
Yesterday, ONEAM informed the market that ROH had defaulted on its agreement to repurchase the luxury five-star property for 4,873 million baht on the scheduled July 14, 2026 maturity date. However, ROH has disputed the characterization of a standard default, attributing the delay to procedural and contractual disagreements with the trust’s trustee.
According to the letter from ROH, the company intends to fulfill its contractual obligation to repurchase the assets. However, ROH stated that MFC Asset Management Public Company Limited (MFC), acting as the trustee of GROREIT, issued payment instructions that did not align with the original terms stipulated in the agreement.
In response to the trustee’s directives, ROH took the following steps:
- Formal Notice Issued: ROH sent an official communication to MFC demanding that the trustee remedy the alleged breach of the payment terms.
- Land Office Attendance: Authorized representatives from ROH attended the designated land office on July 14, 2026, specifically to document and clarify the transactional discrepancies.
Current Operational and Financial Standing
ROH emphasized that the transaction remains in progress and is being actively worked toward completion in strict accordance with the original contractual terms. The company explicitly stated that it faces no financial or operational obstacles that would prevent it from executing the buy-back.
Furthermore, ROH asserted that it retains the legal right to manage the Royal Orchid Sheraton Riverside Hotel while the dispute is being resolved. This directly challenges the initial emergency plan outlined by GROREIT’s management, which intended to immediately terminate the lease and place hotel operations directly under Starwood Hotels & Resorts Worldwide.
