Royal Orchid Hotel (Thailand) Public Company Limited (SET: ROH) has reaffirmed its intention to exercise its contractual right to buy back the Royal Orchid Sheraton Hotel & Towers, maintaining its position despite Grande Royal Orchid Hospitality Real Estate Investment Trust (GROREIT)’s move to sell the property to a third party for THB5.3 billion.
In a clarification submitted to the Stock Exchange of Thailand (SET) on November 4, 2026, ROH stated that it remains the holder of the hotel business operating license for the disputed property and has filed a lawsuit seeking a court ruling confirming its right to repurchase the asset under the terms and conditions of the relevant agreements.
The company said its continued operation of the hotel business at the property would depend on the outcome of the court proceedings.
ROH also maintained that it intends to complete the buy-back in accordance with the contractual terms, arguing that both its repurchase rights and the handover of the property are matters currently under consideration by the court. Consequently, the company said there is no specified timeframe at present for handing over the property, adding that it would continue to defend its position through the legal proceedings to protect its lawful rights.
The latest clarification comes after GROREIT unitholders approved the disposal of the hotel assets to Orchid Hospitality Co., Ltd. for THB5.3 billion on October 28. MFC Asset Management PCL, acting as GROREIT’s trustee, subsequently signed a sale and purchase agreement with the buyer on October 30 and received a THB100 million deposit.
The dispute traces back to GROREIT’s original sale-and-leaseback arrangement with ROH in 2021, when the trust acquired the Royal Orchid Sheraton Hotel & Towers from ROH for THB4.5 billion. ROH subsequently leased the property back to operate the hotel, under an agreement requiring it to repurchase the assets at the end of the fifth lease year for THB4.873 billion, excluding VAT.
However, the contractual buy-back deadline passed on July 14, 2026, without the transaction being completed. GROREIT’s manager, One Asset Management (ONEAM), said ROH failed to make the required payment and complete the ownership transfer at the relevant Land Office, prompting the trust to consider alternative disposal options.
ROH disputed the circumstances surrounding the failed transaction, arguing that the payment procedure proposed by MFC did not comply with the original agreement. The company maintained that it remained committed to the repurchase and continued to hold the contractual right to acquire the property.
In August, ROH reiterated its readiness to buy back the assets for THB4.873 billion, citing financial support from an investment partner. However, the proposed funding was subject to due diligence, internal approvals and the completion of relevant documentation.
GROREIT subsequently presented three disposal options to unitholders: selling the assets back to ROH for THB4.873 billion, accepting Orchid Hospitality’s THB5.3 billion offer, or proceeding with an open auction. Unitholders ultimately approved the Orchid Hospitality transaction, which offered THB427 million more than ROH’s proposed repurchase price.
Meanwhile, ROH noted that revenue generated from the hotel business remains part of the legal dispute and that there is currently no clear timeframe for ceasing revenue recognition from the hotel operations.
The company added that it is studying opportunities to expand into additional businesses to maintain revenue continuity and create long-term value for shareholders, with material developments to be disclosed through the SET’s information disclosure system.
