Key points
- Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition (GROREIT) has initiated legal proceedings against Royal Orchid Hotel (Thailand) Public Company Limited (ROH), alleging failure to surrender the Royal Orchid Sheraton Hotel and Towers property following the expiration of its lease and buy-back arrangement on July 14th, 2026.
- According to information disclosed to the Stock Exchange of Thailand, One Asset Management Limited, acting as the REIT manager, and MFC Asset Management Public Company Limited, serving as trustee, appointed legal representatives to file a lawsuit with Bangkok South Civil Court on October 21st, 2026.
- The lawsuit alleges breach of contract and tortious conduct, claiming that ROH’s failure to hand over the property has prevented the trust from utilizing its investment asset and caused financial damage.
Thailand’s hotel industry is facing renewed legal and financial uncertainty as disputes involving two prominent Sheraton-branded properties have escalated into court proceedings. The Royal Orchid Sheraton Hotel and Towers in Bangkok and the Sheraton Hua Hin Resort & Spa have become the subjects of separate legal actions involving real estate investment trusts, hotel operators, and contractual obligations. Although the disputes involve different parties and circumstances, both highlight growing tensions surrounding hotel leases, rental commitments, and property management rights.
Image Credit: Thailand Hotel News
The latest developments have attracted attention because both properties are established names in Thailand’s hospitality sector, serving international visitors and domestic travelers. As this Thailand Hotel News report examines, the lawsuits raise important questions about the financial arrangements underpinning major hotel investments, particularly when operators face mounting financial pressures or disagreements over contractual responsibilities. The cases also demonstrate how disputes between property owners and hotel operators can complicate business continuity and asset management.
Royal Orchid Sheraton Faces Legal Action Over Property Handover
Grande Royal Orchid Hospitality Real Estate Investment Trust with Buy-Back Condition (GROREIT) has initiated legal proceedings against Royal Orchid Hotel (Thailand) Public Company Limited (ROH), alleging failure to surrender the Royal Orchid Sheraton Hotel and Towers property following the expiration of its lease and buy-back arrangement on July 14th, 2026.
According to information disclosed to the Stock Exchange of Thailand, One Asset Management Limited, acting as the REIT manager, and MFC Asset Management Public Company Limited, serving as trustee, appointed legal representatives to file a lawsuit with Bangkok South Civil Court on October 21st, 2026.
The lawsuit alleges breach of contract and tortious conduct, claiming that ROH’s failure to hand over the property has prevented the trust from utilizing its investment asset and caused financial damage.
Trust Demands Property Transfer and Outstanding Rental Payments
The legal action seeks several remedies beyond the physical surrender of the hotel.
GROREIT wants ROH to vacate the premises and transfer possession to the trustee. It also seeks the substitution of MFC for ROH in agreements necessary for hotel operations, alongside the transfer of relevant business licenses, equipment warranties, and parking lease rights.
The parking arrangements involve an existing agreement between ROH and River City Bangkok Company Limited. Should the transfer prove impossible, the trust is seeking compensation for replacement parking facilities.
Additionally, the trust is demanding outstanding rental payments dating from May 2026, together with annual interest of five percent.
In a significant financial development, the trust has requested a temporary court injunction requiring ROH to deposit THB25 million monthly as security against potential damages. The proposed payments would continue from the court’s order until the litigation concludes or further instructions are issued.
The court has not been reported as granting this request.
Sheraton Hua Hin Caught in Separate Lease Dispute
Meanwhile, another legal confrontation has emerged involving the Sheraton Hua Hin Resort & Spa.
Grand Asset Hotels and Property Public Company Limited (GRAND) issued a clarification on October 20th, 2026, responding to disclosures made by One Asset Management Company Limited on October 15th.
One Asset Management, representing the Grand Hospitality Real Estate Investment Trust, had announced the termination of lease arrangements covering the resort’s immovable and movable assets, together with associated agreements.
Legal proceedings were subsequently brought against Honor Business Company Limited, the resort’s lessee, and GRAND, which acts as revenue guarantor.
GRAND Blames Pandemic Losses and Defends Negotiations
GRAND maintains that the dispute must be understood against the prolonged financial consequences of COVID-19.
The company explained that the pandemic severely disrupted tourism and hotel operations, leaving the lessee facing persistent operating losses. Despite these difficulties, it stated that rental obligations continued to be honored throughout the pandemic.
GRAND also emphasized that both companies repeatedly approached the trust and its manager to negotiate more sustainable rental arrangements reflecting prevailing economic conditions.
On October 9th, 2026, Honor Business submitted a formal proposal addressing operational continuity, asset preservation, and an orderly potential handover.
However, those discussions failed to produce an agreement acceptable to all parties.
GRAND continues to maintain that it and the lessee acted in good faith and sought to protect stakeholder interests.
Hotel Investment Disputes Raise Wider Industry Questions
These separate disputes underscore the complexities of Thailand’s hotel investment structures, where property ownership, operational control, rental obligations, and financial guarantees may involve multiple organizations.
For investors and hospitality operators, the outcomes could provide important lessons about contractual enforcement, financial resilience, and managing transitions when commercial relationships deteriorate.
Neither lawsuit should be interpreted as establishing wrongdoing before the courts determine the respective claims.
The immediate challenge will be resolving competing contractual demands while protecting the hotels’ commercial value and operational stability. Although the cases differ substantially, both demonstrate why transparent negotiations, realistic financial commitments, and clearly defined property handover procedures remain essential to Thailand’s hospitality investment environment. Their eventual resolution will be closely watched by hotel investors and industry stakeholders.
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