Royal Orchid Hotel (Thailand) Public Company Limited (SET: ROH) recently issued a clarification regarding a dispute with One Asset Management Limited (ONEAM), the manager of GROREIT Trust, over the alleged failure to repurchase property assets as per contract.
ROH affirmed its intent to proceed with the asset buyback but explained that it was unable to follow the payment methods outlined by MFC Asset Management Public Company Limited (MFC), the trustee, as those did not align with contractual terms.
Pote Harinasuta, Chief Executive Officer of ONEAM, as the manager of the Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition (SET: GROREIT), told “Kaohoon” that the issue did not stem from the refusal to allow a buyback under the contract. Instead, the buyer could not make the payment by the designated deadline, with the required payment amounting to approximately THB 4.9 billion.
He addressed the technical issue reported to the Stock Exchange of Thailand (SET) about payment methods, clarifying that it was not material to the core agreement. The critical point is the ability to pay the required sum, not the specific form or channel of payment.
Pote further stated that while the agreement had a term of about five years (1,700 – 1,900 days), ROH had raised specific contract detail issues only in the final 30 days before the deadline, despite six months of ongoing negotiations. He stressed that financial readiness was the main concern, not technical contract details.
ONEAM will now collaborate with MFC (Trustee) and Government Savings Bank (GSB), a joint creditor, to follow the contract’s procedures should the buyback fail as scheduled. The assets would then return to management under the original mechanism.
As the fund manager, ONEAM will continue to operate and consider appropriate asset dispositions to maximize returns for unit holders, confirming a strong commitment to investor interests. ONEAM will issue an official statement for further clarification.
Songpol Chevapanyaroj, President of GSB and creditor to GROREIT, commented that such incidents are normal within fund, creditor, and debtor processes, requiring adherence to established procedures and regulations.
He added that payment must be handled by the fund manager. If repayment is not made, the bank will proceed according to standard creditor protocols. The bank’s loan is well secured by assets with a value well above the loan amount, and as a creditor with preferential right, risk remains manageable.
Regarding the broader hotel business, the sector has witnessed continuous recovery over the past two years—both in Bangkok and upcountries—with occupancy rates improving compared to the COVID-19 pandemic period. Overall business outlook is positive. The bank closely monitors each debtor as standard practice.
Furthermore, most of the GSB’s loan portfolio comprises secured loans, both through property mutual funds and direct loans to hotel operators. Loan repayments have steadily improved in line with the economic and tourism recovery post-COVID-19.
On July 15, ROH issued an official statement to the 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 ONEAM.
Earlier, ONEAM informed the market that ROH had defaulted on its agreement to repurchase the luxury five-star property for THB 4,873 million 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, 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.
