The Royal Orchid Sheraton sale has been approved. On 28 October unitholders of GROREIT, the trust that owns the 726-key riverside hotel, voted to sell it to Orchid Hospitality Co., Ltd for THB5.3bn. They rejected a lower buy-back offer of THB4.873bn from Royal Orchid Hotel (Thailand) PCL (ROH), the hotel’s former owner and tenant. The buyer has 14 days to pay. The hard part is that ROH has not left the hotel, and it says the trust has no right to sell it to anyone else.
Key facts
| Item | Detail |
|---|---|
| Hotel | Royal Orchid Sheraton Hotel & Towers, 726 keys, Bangkok riverside |
| Seller | GROREIT; manager One Asset Management (ONEAM), trustee MFC Asset Management |
| Approved buyer | Orchid Hospitality Co., Ltd |
| Price | THB5.3bn, against an appraisal of about THB5.21bn |
| Vote for the sale | 97.66% |
| ROH buy-back at THB4.873bn | Rejected, about 91% against |
| Payment | THB100m deposit on signing, THB5.2bn by 11 November |
| Fallback | Open auction, floor THB4,951.4m, about six months |
| After the sale | Repay THB1.35bn to Government Savings Bank, return about THB12 a unit, wind up the trust |
What happened
Unitholders voted on four items. They rejected the sale to ROH. They approved the sale to Orchid Hospitality. They approved an open auction as a fallback if that sale fails. And they approved winding up the trust once the hotel is sold and the money returned.
ONEAM said it would cancel the old arrangement and sign a sale agreement with Orchid Hospitality within two days, with a THB100m deposit. The remaining THB5.2bn is due by 11 November, according to the Bangkok Post. ONEAM aims to return the money and close the trust by the end of November.
Thai press reports describe Orchid Hospitality as a company held by Suchad Chiaranussati, founder and chairman of the property investment firm SC Capital Partners. When we covered the GROREIT lawsuit against ROH on 23 October, the buyer’s backer had not been named.
The lender is waiting. Government Savings Bank has extended the trust’s THB1.35bn loan by six months to January, on condition that nothing is paid to unitholders until the debt is cleared.
The dispute is not over
ROH has filed its own suit at the South Bangkok Civil Court against GROREIT and ONEAM. It says its right to buy the hotel back is still valid and that it acted in good faith. ONEAM’s position is that the right expired when ROH failed to complete by 14 July 2026.
The trust sued ROH on 21 October. It wants ROH to leave and hand over the hotel, to transfer the hotel’s operating agreements and business licences to the trustee, and to pay rent owed since May with 5% interest. It has also asked the court to order ROH to deposit THB25m a month as security.
Our read
The numbers favour the sale. By our calculation, THB5.3bn is about THB7.3m per key, against THB6.71m at ROH’s buy-back price. That is THB427m more for unitholders.
But the buyer is not getting a clean handover on day one. The hotel’s licences and operating agreements still sit with ROH, and the court has not ruled. What the sale agreement says about possession and the lawsuits has not been published. A buyer that pays in full by 11 November is paying for the hotel and the dispute together.
If Orchid Hospitality does not pay on time, the auction route takes about six months. The trust says more than 20 parties have shown interest since ROH missed its July payment. That suggests real demand for freehold riverside land in central Bangkok, even with a dispute attached.
What it means for you
1. Owners in sale-and-leasebacks
A buy-back right is only as good as your funding on the day. Miss the date and the price you agreed stops protecting you.
2. Buyers of hotels with sitting tenants
Price the time and legal cost of getting possession. Make licence transfers and operator agreements conditions of payment where you can.
3. Lenders
Short loan extensions with a block on distributions kept this deal moving. Expect the same terms on other buy-back REITs whose terms end this year.
4. Operators
When owner and tenant fight, the brand is caught in the middle. Agree in advance who you report to if the lease ends in dispute.
FAQ
Who is buying the Royal Orchid Sheraton?
Orchid Hospitality Co., Ltd, for THB5.3bn. Thai press reports link it to Suchad Chiaranussati, founder of SC Capital Partners.
Why was ROH’s offer rejected?
ROH offered THB4.873bn, its original buy-back price. Unitholders preferred the higher offer, and about 91% voted against ROH.
When must the buyer pay?
A THB100m deposit on signing and the remaining THB5.2bn by 11 November 2026.
What happens if the sale fails?
The trust can sell the hotel by open auction at no less than THB4,951.4m, which is expected to take about six months.
Is the legal dispute settled?
No. ROH says its buy-back right is still valid and has sued the trust and its manager. The trust is suing ROH to hand the hotel over.
