Royal Orchid Hotel (Thailand) Public Company Limited (SET: ROH) has reaffirmed its plans to buy back the Royal Orchid Sheraton Riverside Hotel Bangkok assets, according to an announcement to the Stock Exchange of Thailand. The company disclosed ongoing cooperation with its financial partner and addressed operational stability, funding, and regulatory compliance in its response to a regulatory inquiry.
ROH reported that its hotel operations remain uninterrupted following the expiration of a key lease agreement on August 14, 2026. The business continues to serve guests and generate income as usual. According to the company, recent cash flow assessments indicate that available liquidity is sufficient to meet regular operating needs and to facilitate the planned asset repurchase.
ROH provided an update on its intention to buy back the hotel assets from the Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition (GROREIT). On August 14, ROH formally notified MFC Asset Management, acting as GROREIT’s trustee, and ONE Asset Management, the REIT manager, that it plans to exercise its right to repurchase the property at the agreed price of THB 4.873 billion, as set forth in existing agreements.
The company noted that it is receiving assistance from its financial partner. However, this support remains contingent on completion of due diligence, regulatory approvals, and execution of formal agreements. ROH has asked GROREIT to fulfill all obligations necessary for the transaction, including actions required to finalise the sale and transfer of the property’s ownership.
Regarding compliance with SET’s free-float requirements, ROH stated that hotel operations are ongoing and unaffected by the buyback process. Measures to address the free-float issue are underway, such as seeking new investors to raise minority shareholdings. These efforts are being carried out concurrently with the asset repurchase negotiations.
The company stated it will act in the best interests of all stakeholders and committed to provide further updates on significant developments, particularly those relating to the repurchase process.
A financial institution source informed “Kaohoon” that the identified financial partner is expected to be Bain Capital, which is anticipated to support the refinancing and future repurchase arrangements for ROH.
The source expects that the transaction structure between ROH and Bain Capital will resemble a loan granted to the company for repurchasing the hotel asset from the GROREIT. Under the contract, ROH will be obliged to repay the loan upon maturity through an asset buyback option, while also paying interest for the duration specified in the contract with Bain Capital.
“It’s essentially a refinancing. Bain Capital steps in to acquire the asset temporarily, and then ROH will repurchase it. However, we still need to wait for clarity on whether Bain Capital will actually proceed, as it still requires approval from the trust’s board for the transaction,” the source remarked.
Additionally, the source anticipates that ROH’s move may be intended to prevent GROREIT from launching an auction for the sale of the hotel, or at the very least, during Bain Capital’s due diligence, ROH can continue seeking other prospective buyers in parallel. The source believes GROREIT will ultimately seek or select the terms that best fulfill the trust’s obligations, particularly in safeguarding the interests of unit holders.
Founded in 1984 in Boston, Massachusetts, Bain Capital is a leading global alternative investment firm that pioneered a consulting-based approach to private equity investing. Today, the firm manages approximately $225 billion in assets under management (AUM) across a highly diversified global platform encompassing private equity, credit, venture capital, real estate, and public equity. Bain Capital distinguishes itself in the global capital markets through its deep operational expertise, partnering closely with management teams to transform businesses, unlock long-term value, and drive sustainable growth.
