Key points
- According to disclosures reviewed in this Thailand Hotel News report, the dispute has escalated into legal proceedings involving eviction, damages, and a request for substantial monthly financial security.
- Ahead of that deadline, Bualuang Asset Management, serving as trustee, issued a formal notification on September 11, instructing the lessee to prepare for the property’s return.
- Honor Business was named as the first defendant in its capacity as lessee, while GRAND was named as the second defendant because of its role as income guarantor.
A major legal dispute has erupted over the Sheraton Hua Hin Resort & Spa, with Grand Hospitality Real Estate Investment Trust (GAHREIT) taking court action against its former hotel lessee and corporate guarantor following the expiration of a multimillion-baht lease agreement.
Image Credit: Sheraton Hua Hin Resort & Spa
The lawsuit centers on allegations that Honor Business Co., Ltd. failed to surrender the luxury resort, transfer essential operating licenses, and settle outstanding rental obligations after its lease expired. According to disclosures reviewed in this Thailand Hotel News report, the dispute has escalated into legal proceedings involving eviction, damages, and a request for substantial monthly financial security.
Lease Expiration Sparks Legal Showdown
One Asset Management Co., Ltd., acting as GAHREIT’s trust manager, disclosed that the Sheraton Hua Hin Resort & Spa had been leased to Honor Business under an agreement expiring on October 11, 2026.
Ahead of that deadline, Bualuang Asset Management, serving as trustee, issued a formal notification on September 11, instructing the lessee to prepare for the property’s return.
The notification required Honor Business to surrender the hotel assets, transfer the hotel operating license and other relevant permits, fulfill outstanding contractual obligations, and settle unpaid rent together with applicable interest.
The deadline for completing these requirements was October 12, 2026, at 10:00 AM.
However, according to GAHREIT’s disclosure, the lessee failed to comply with these requirements, prompting concerns about potential financial losses and the trust’s ability to regain control of its investment.
Two Companies Face Court Action
Following consultations between One Asset Management and Bualuang Asset Management, legal representatives were appointed to pursue proceedings against Honor Business and Grande Asset Hotels and Properties Public Company Limited (GRAND).
Honor Business was named as the first defendant in its capacity as lessee, while GRAND was named as the second defendant because of its role as income guarantor.
The lawsuit, filed with Bangkok South Civil Court on October 15, 2026, includes claims involving breach of contract, tort, eviction, and damages.
GAHREIT maintains that legal intervention is necessary to safeguard the trust’s assets and protect unitholders against further financial exposure.
GAHREIT Seeks Nearly 12 Million Baht Monthly
Beyond recovering possession of the resort, GAHREIT has requested a temporary court injunction requiring both defendants to deposit 11,916,115.08 baht monthly as financial security.
The amount represents the average monthly equivalent of the annual rental income stipulated for the tenth year under a potential lease renewal.
If granted, the proposed security requirement would apply from the date of the court order until proceedings conclude or the court directs otherwise.
The request remains subject to judicial consideration and should not be interpreted as an existing payment order.
Resort Dispute Raises Wider Investment Questions
The unfolding confrontation highlights the financial and operational complications that can arise when hotel lease agreements expire without an orderly transfer of assets and licenses.
For GAHREIT, the immediate priority remains recovering contractual entitlements while limiting additional exposure for investors. The eventual outcome could carry important implications for hotel leasing arrangements, corporate guarantees, and asset protection across Thailand’s hospitality investment sector.
The allegations have not yet been established by a final court judgment, and the defendants’ responses remain important to the proceedings. As the dispute develops, attention will focus on the resort’s handover, outstanding rental payments, and the court’s decision regarding financial security.
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