One Asset Plans to Auction Royal Orchid Sheraton Hotel with a Minimal Bid of 5 Billion Baht to 10 Interested Parties

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Thailand Hotel News: The future ownership of one of Bangkok’s best-known riverside hotels is set to become one of the hospitality sector’s biggest stories of the year, with One Asset Management preparing to auction the Royal Orchid Sheraton Hotel & Towers following the failure of Royal Orchid Hotels (Thailand) Public Company Limited (ROH) to complete its agreed buyback arrangement. The planned sale, expected to begin with a minimum bid of 5 billion baht, has already attracted interest from more than 10 potential buyers, including leading Thai business families and major international investors seeking premium hospitality assets.

The latest developments have intensified attention across Thailand’s investment and hotel industries as the trust manager moves to protect the interests of approximately 1,600 unit holders in the Grand Royal Orchid Hospitality Real Estate Investment Trust (GROREIT). This Thailand Hotel News report comes as market observers closely watch the legal and financial process surrounding one of Bangkok’s most recognizable hotel properties, with its prime Chao Phraya River location, strong operating performance and long-term redevelopment potential making it an attractive acquisition target despite the ongoing ownership dispute.

Buyback Agreement Falls Through

The dispute stems from ROH’s failure to meet its obligations under the agreement to repurchase the Royal Orchid Sheraton Hotel from GROREIT. According to Mr. Poj Harinsut, Chief Executive Officer of One Asset Management Co., Ltd., which serves as the trust manager, ROH was scheduled to complete payment at the Land Department on July 14 but failed to do so.

As a result, the company is now required to transfer ownership of the hotel asset to the trust within 30 days. Once the transfer is completed, One Asset Management intends to begin the process of selling the property so proceeds can be distributed to the trust’s investors.

Mr. Poj explained that preparations for this scenario have already been made, including setting aside sufficient reserves to cover six months of interest payments for investors while the sale process is completed.

He also emphasized that the land title remains under the ownership of the trust, placing the trust in a strong legal position to proceed with the disposal of the asset without unnecessary delays.

Auction Planned with 5 Billion Baht Starting Price

One Asset Management believes the Royal Orchid Sheraton Hotel remains a highly valuable hospitality asset despite the financial challenges experienced by ROH.

The auction is expected to commence with a minimum bid of 5 billion baht, a valuation supported by the property’s proven operational performance. The hotel reportedly generates annual profits exceeding 300 million baht while maintaining an occupancy rate of approximately 70 percent, highlighting its continued strength in Bangkok’s competitive hospitality market.

Five years ago, the combined value of the land and hotel buildings was independently assessed at approximately 5.2 billion baht. However, when the trust was originally established during the COVID-19 crisis, the asset was transferred into the trust at a discounted value of around 4.5 billion baht to provide liquidity and support for the hotel business during an exceptionally challenging period.

The planned repurchase price was initially set at approximately 4.873 billion baht, enabling investors to receive an estimated internal rate of return of around 8 percent while also benefiting from annual interest payments of approximately 6 percent, producing an overall return estimated at about 27 percent over the investment period.

Legal Action Remains an Option

While the trust manager remains focused on completing an orderly sale of the hotel, legal proceedings remain a possibility if ROH does not comply with the transfer deadline.

Should ownership not be transferred within the required 30-day period, which expires around August 14, 2026, One Asset Management has indicated it will commence legal action to protect investor interests.

Mr. Poj acknowledged that litigation could delay the eventual sale of the property and postpone repayments to unit holders. Nevertheless, he stressed that legal enforcement would become necessary if contractual obligations are not fulfilled.

Strong Interest from Thai and International Investors

Despite the legal uncertainty, investor appetite for the Royal Orchid Sheraton Hotel appears exceptionally strong.

Mr. Poj revealed that more than 10 parties have already expressed interest in acquiring the landmark property. The enquiries include several prominent Thai business families as well as major foreign investors actively searching for premium hotel assets in Bangkok.

Among the latest enquiries was an approach through an investment broker representing buyers interested in transforming the property into a large-scale wellness-focused hospitality development. The hotel’s freehold status and its prestigious riverside location along the Chao Phraya River have significantly enhanced its appeal to both domestic and overseas investors.

One Asset Management has indicated it will evaluate all genuine offers based on commercial merit while ensuring that prospective purchasers meet appropriate financial and regulatory standards. The primary objective remains achieving the highest possible value while enabling investors to receive their funds as quickly as possible.

SEC Discussions Could Influence the Outcome

The matter has also attracted the attention of Thailand’s Securities and Exchange Commission (SEC), with discussions scheduled regarding the next steps available under the regulatory framework governing the trust.

Mr. Poj confirmed that meetings with the SEC will examine possible mediation, negotiation procedures and any regulatory measures that may be appropriate. Since GROREIT was originally established under a special initiative introduced during the COVID-19 pandemic to assist struggling businesses, the regulator is expected to play an important role in determining how the current dispute should proceed.

The involvement of the SEC is considered particularly important given the large number of retail investors who hold units in the trust.

Financing Proposal Still Being Watched

One possible alternative to an auction has not yet been completely ruled out.

According to Mr. Poj, there have been reports that ROH is seeking financing from a German bank. Should the company secure sufficient funding to settle the outstanding obligations in full, One Asset Management may be prepared to consider negotiations.

However, any negotiated settlement would still require approval from the Securities and Exchange Commission before it could proceed.

Mr. Poj noted that while a negotiated repayment remains theoretically possible, an open auction could potentially generate a higher selling price for the property. As a result, any proposal from ROH would need to demonstrate not only that financing has been secured but also that it represents the best possible outcome for investors.

The coming weeks are expected to determine the next chapter for the Royal Orchid Sheraton Hotel. Whether ownership changes through a negotiated settlement or a competitive auction, the landmark riverside property has already attracted significant attention from both local and international investors eager to secure one of Bangkok’s most recognizable hotel assets. For the trust’s 1,600 unit holders, the priority remains achieving a timely resolution that maximizes value while protecting their investments. Equally, the outcome could become an important reference point for future hospitality real estate transactions involving investment trusts and distressed hotel assets in Thailand’s recovering tourism market.

For the latest developments on the Royal Orchid Sheraton saga news, keep on logging to Thailand Hotel News.