Royal Orchid Credit Rating Downgraded to D Over Missed Buyback
Royal Orchid Hotels' credit rating dropped to D after failing to repurchase its flagship Bangkok hotel from GROREIT by the July 14 deadline, breaching a 4.9 billion baht buyback obligation from a 2021 sale-leaseback deal.
On July 16, 2026, Tris Rating downgraded the corporate credit rating of Royal Orchid Hotels (Thailand) Public Company Limited (ROH) to level D. The downgrade, effective July 15, 2026, stems from the company's failure to fulfill its obligation to repurchase the Royal Orchid Sheraton Hotel and Towers from GROREIT by the contractual deadline of July 14, 2026. Under a sale-leaseback transaction completed in July 2021, ROH was required to repurchase the hotel—its sole revenue-generating asset—at the end of the five-year lease term for an agreed price of 4.9 billion baht. The company's failure to meet this repurchase deadline within the specified timeframe constitutes a default on its debt obligations, triggering the credit rating downgrade to level D.
