Key points
- In response to growing concerns, ROH submitted a clarification to the Stock Exchange of Thailand (SET), reaffirming its commitment to completing the buyback.
- The company emphasized that discussions remain ongoing and that it is working closely with the trustee to resolve the outstanding issues and complete the acquisition in accordance with the contract.
- With billions of baht at stake and one of Bangkok’s landmark hotels at the center of the dispute, the situation is likely to remain under close observation by institutional and retail investors alike.
Thailand Hotel News: The hospitality investment market was shaken on Tuesday after Grand Royal Orchid Hospitality Real Estate Investment Trust (GROREIT) suffered a sharp sell-off following uncertainty surrounding the planned repurchase of the iconic Royal Orchid Sheraton Hotel & Towers. Investors reacted swiftly as concerns mounted over the delayed completion of a contractual buyback valued at 4.873 billion baht, triggering one of the trust’s steepest single-day declines in recent years.
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GROREIT units plunged as much as 14.92% during morning trading, falling to an intraday low of 7.55 baht before recovering slightly. This Thailand Hotel News report notes that by 11:44 a.m., the trust was trading at 7.70 baht, down 1.35 baht, with trading turnover reaching 15.53 million baht. Selling pressure continued throughout the session, with the trust eventually closing at 7.85 baht, representing a loss of 1.20 baht, or 13.26%, from the previous close of 9.05 baht.
More than 2.37 million units changed hands during the trading day, highlighting heightened investor concern over the unfolding situation.
Buyback Deadline Missed
The market reaction followed confirmation that Royal Orchid Hotel (Thailand) Public Company Limited (ROH) did not complete the repurchase of the Royal Orchid Sheraton Hotel & Towers project by the contractual deadline of July 14, 2026. Under the lease agreement, ROH had committed to buying back the property at an agreed value of 4.873 billion baht, excluding value-added tax, upon the completion of the fifth year of the arrangement.
The missed deadline immediately sparked uncertainty among investors, who questioned whether the transaction would proceed according to the original contractual terms. The delay fueled widespread selling of GROREIT units as market participants assessed the potential financial and legal implications.
ROH Explains the Delay
In response to growing concerns, ROH submitted a clarification to the Stock Exchange of Thailand (SET), reaffirming its commitment to completing the buyback. The company explained that the transaction had been delayed because of unresolved disagreements with MFC Asset Management, acting as the REIT trustee, over the payment mechanism for the 4.873 billion baht purchase.
According to ROH, the proposed payment structure did not fully align with the provisions outlined in the original agreement. The company emphasized that discussions remain ongoing and that it is working closely with the trustee to resolve the outstanding issues and complete the acquisition in accordance with the contract.
Investors Watching Closely
The dispute has placed the spotlight firmly on the relationship between property owners, REIT trustees, and investors, with many now closely monitoring how quickly the parties can reach a mutually acceptable resolution. Although ROH has reiterated its intention to honor the agreement, the temporary uncertainty has already had a significant impact on investor confidence and market sentiment.
Market analysts expect that further announcements from both ROH and MFC Asset Management will be closely scrutinized in the coming days, as the outcome could influence not only GROREIT’s valuation but also investor perceptions of contractual certainty within Thailand’s hospitality REIT sector. With billions of baht at stake and one of Bangkok’s landmark hotels at the center of the dispute, the situation is likely to remain under close observation by institutional and retail investors alike.
For the latest on Grande Asset’s GROREIT saga, keep on logging to Thailand Hotel News.
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