Key points
- The planned sale of Bangkok’s landmark Royal Orchid Sheraton Hotel and Towers has encountered a major legal obstacle after the Bangkok South Civil Court issued a temporary injunction blocking the transaction.
- The development represents a significant setback for the Grand Royal Orchid Hospitality Real Estate Investment Trust (GROREIT), which had already secured an agreement to sell the hotel assets.
- According to disclosures made to the Stock Exchange of Thailand (SET), this Thailand Hotel News report highlights how the court intervention could disrupt the transaction timeline and delay payments to unitholders.
The planned sale of Bangkok’s landmark Royal Orchid Sheraton Hotel and Towers has encountered a major legal obstacle after the Bangkok South Civil Court issued a temporary injunction blocking the transaction. The ruling follows a petition filed by Royal Orchid Hotel (Thailand) Public Company Limited (ROH), raising uncertainty over the property’s sale and the anticipated distribution of proceeds to investors.
Image Credit: Thailand Hotel News
The development represents a significant setback for the Grand Royal Orchid Hospitality Real Estate Investment Trust (GROREIT), which had already secured an agreement to sell the hotel assets. According to disclosures made to the Stock Exchange of Thailand (SET), this Thailand Hotel News report highlights how the court intervention could disrupt the transaction timeline and delay payments to unitholders.
Court Demands 4.873 Billion Baht Security Deposit
On November 9, 2026, ROH petitioned the Bangkok South Civil Court to temporarily suspend the sale of the hotel’s real estate and movable assets.
The court granted the injunction that same day, requiring ROH to provide security totaling 4.873 billion baht within seven days. Failure to meet this requirement would result in the injunction being lifted.
The substantial security requirement underscores the financial significance of the dispute involving one of Bangkok’s prominent riverside hospitality properties.
Hotel Sale Agreement Already Signed
The suspended transaction involves Orchid Hospitality Co., Ltd., which signed a Sale and Purchase Agreement (SPA) with MFC Asset Management Public Company Limited, acting as GROREIT’s trustee, on October 30, 2026.
The buyer subsequently paid a 100 million baht deposit, marking an important step toward completing the acquisition.
The transaction had received approval during GROREIT’s unitholders’ meeting No. 1/2026, with the sale expected to proceed within the agreed timeframe.
Asset Manager Moves to Challenge Injunction
One Asset Management Co., Ltd., GROREIT’s trust manager, is preparing to challenge the court’s decision.
The company intends to instruct Theerakhupt Law Office Co., Ltd. to petition for the injunction’s revocation, seeking to resume the transaction as originally approved by unitholders.
Investors Face Uncertain Repayment Timeline
The injunction has interrupted the transaction’s 14-day completion period, potentially postponing both capital repayments and investment returns.
While the legal proceedings remain unresolved, the immediate priority for GROREIT is restoring the transaction’s ability to proceed. The outcome will determine whether the hotel sale can move forward promptly or faces further delays, leaving investors awaiting clarity over the timing of their anticipated distributions.
Stay tuned for the latest on the Royal Orchid Sheraton Hotel and Grande Asset Saga.
