Wann Asset Management values Royal Orchid Sheraton at 5,212 million baht, awaiting a solution by September 1st after ROH defaulted on its buyback agreement.
Wann Asset Management revealed its valuation of the Royal Orchid Sheraton Hotel, an asset under the GROREIT trust, at 5,212 million baht, using a revenue-based method with a 7% discount rate. A meeting to clarify the situation to unit holders on September 1st regarding solutions after ROH defaulted on the repurchase agreement for the property is being considered.
On August 29, 2569 , Wann Asset Management Co., Ltd. informed the Stock Exchange of Thailand on August 28 that, as the manager of the Grand Royal Orchid Hospitality Real Estate Investment Trust (GROREIT) with a repurchase agreement, it has provided details of the asset valuation of the trust. This follows the commissioning of an appraiser to assess the market value of the assets in the event that lease agreements have expired or full ownership has been acquired.
This valuation was made following Royal Orchid Hotels (Thailand) Public Company Limited (ROH)'s failure to repurchase and take ownership of the Royal Orchid Sheraton Hotel & Towers project by the scheduled date of July 14, 2026, which was the expiration date of the fifth year of the lease agreement. The repurchase price was set at 4,873 million baht.
The Valuation and Consultants Co., Ltd. was responsible for appraising the Royal Orchid Sheraton Hotel and Towers project. The appraisal was conducted on January 30, 2569, and additional comments were submitted to the Trust on August 28, 2569.
The assets being appraised are freehold real estate and movable assets of the Royal Orchid Sheraton Hotel & Towers project, which offers 726 rooms and is located at 2 Captain Bush Lane, Charoen Krung Road, Bang Rak Subdistrict, Bang Rak District, Bangkok, on a total land area of approximately 5 rai, 1 ngan, and 65 square wa.
For property valuation, the income approach was used, with a discount rate of 7.00%. The property was valued at 5,212 million baht assuming the lease had expired and full ownership was obtained. This is 339 million baht, or approximately 7%, higher than the original repurchase price of 4,873 million baht.
Meanwhile, the trust is preparing to provide a briefing to unit holders on September 1, 2569, to inform them of the situation and proposed solutions following ROH's default on the repurchase and transfer of ownership of the assets as stipulated.
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