Royal Orchid Hotel (Thailand) Misses Deadline to Acquire Bangkok Property
Royal Orchid Hotel (Thailand) (BKK:ROH) has failed to buy back the Royal Orchid Sheraton Hotel and Towers property from Grande Royal Orchid Hospitality REIT (BKK:GROREIT) by the July 14 deadline, according to a Tuesday filing with the Thailand Exchange.Under an asset sale and purchase agreement, the hotel operator was obligated to repurchase the property upon expiry of the fifth lease year at an agreed price of 4.87 billion baht.To keep the hotel operational, Grande Royal Orchid Hospitality REIT's trustee, MFC Asset Management, the trustee is terminating Royal Orchid Hotel's operational role and engaging Starwood Hotels & Resorts Worldwide to act as the interim hotel manager.The trustee has also petitioned the Government Savings Bank for urgent loan extensions and financial covenant waivers
