Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition (SET: GROREIT) has informed the Stock Exchange of Thailand that it has taken legal action against Royal Orchid Hotel (Thailand) Public Company Limited (SET: ROH), following its failure to handover the Royal Orchid Sheraton Hotel and Towers Project after reaching the lease agreement and the property’s buy-back expiry date of July 14, 2026.
One Asset Management Limited (ONEAM) in its capacity as the REIT Manager and MFC Asset Management Public Company Limited (MFC) in its capacity as the Trustee appointed the lawyer to file a lawsuit against ROH with Bangkok South Civil Court on October 21, 2026. The claims include breach of contract and tort to MFC as the Trustee of the Trust, which results in damages from that the trust cannot utilize the property. With this claim, ROH needs to fulfill following requests for the trust:
- Remove the premises along with their retinue from the Property and handover the property.
- Procure that MFC, in its capacity as Trustee of the Trust, be substituted for ROH as a party to the agreements relevant to the operation of hotel business.
- Assign to MFC the parking lease rights under the parking lease agreement between River City Bangkok Company Limited and ROH. If ROH fails to do so, ROH shall pay the costs incurred in procuring replacement of parking facilities.
- Assign to MFC all warranty of registered movable properties.
- Transfer to MFC the hotel business license and all other licenses relating to the operation of the hotel business. If ROH fails to do so, ROH shall compensate for the damages.
- Pay all outstanding rents accruing from May 2026, together with interest thereon at the rate of five percent (5%) per annum.
Along with the above-mentioned request, the trust also appointed the lawyer to file a petition for temporary injunction requesting the Court to order ROH to deposit money with the Court at the rate of THB 25,000,000 per month (being the average annual rental rate of the 5th lease year and the average expenses of the trust on current year) as security for damages caused to the REIT, effective from the date of the Court’s order until the case becomes final or the Court orders otherwise.
