GROREIT entered the first trading day on 21 July 2021, selling IPO with a total value of 4.5 million baht, to be the first REIT Buy Back with high and stable returns in Thailand. Grand Asset is confident that the hotel business has a chance to recover sooner and be ready to provide the hotel staff in all 5 hotels to receive 100% vaccination against COVID-19 in August. Moving forward with plans to improve all hotel services to gain more income after the Covid-19 situation is better.
On July 21, 2021, Mr. Vitavas Vibhagool, Chief Executive Officer of Grande Asset Hotels and Property Public Company Limited, revealed that after companies in the Grand Asset group namely, Royal Orchid Hotel (Thailand) Public Company Limited has offered to invest in Grand Royal Orchid Hospitality Real Estate with a buy-back agreement or GROREIT on June 28 - July 9, 2021, getting more attention and can be sold out (IPO) for the first time to the general public.
In this regard, GROREIT trust has a value of 4,500 million baht, managed by ONE Asset Management Company Limited as the REIT manager and underwriter of Grand Royal Orchid Hospitality Real Estate to list the securities and start trading on the Stock Exchange of Thailand for the first day on July 21, 2021
“The Company would like to thank the investors for the very positive response with GROREIT for investing in the ownership of Royal Orchid Sheraton Hotel. Despite the investment pressure during this period with the rate of return on stocks may fluctuate unstable but investing in GROREIT has a fixed rate of return that can give high dividends with a total return of approximately 8% per annum (IRR), it is a very attractive investment option.”
GROREIT is the first REIT buy-back to be traded on SET with the different investment terms from other REITs with a shorter investment only 5 years.
However, the company has also leased assets back to management with certain rental guarantees. Including plans to return to buy the hotel back within 5 years with confidence that after the Covid-19 situation is better, the hotel business will have a chance to recover quickly, especially the Royal Orchid Sheraton Hotel that has the potential to generate flowing income to the company consistently.
Mr. Vitavas Vibhagool said that during the period of the Covid-19 outbreak, the hotel business is directly affected but the company has adjusted the strategies in accordance with situation to overcome this crisis, such as launching Staycation and Work from Hotel packages, offering hotel rooms and amenities to work comfortably and to prepare and ensure the safety of both staff and tourists. All employees of the five hotels in the group will be vaccinated against COVID-19 within August 2021.
In addition, the company has plans to improve various services of the hotels to be able to provide a variety of services to meet the needs of today's customers, for example, "Royal Orchid Sheraton" will renovate a new waterfront restaurant adding a variety of seafood menus and waterfront bars to achieve a new relaxing atmosphere along the Chao Phraya River. “The Westin Grande Sukhumvit” will be renovating the Kisso restaurant by adding a food menu for healthy people. For the bar, space will be renovated to suit the lifestyles of today's customers as a meeting place. Moreover, the hotel's location is a main connection point for Asoke BTS and MRT Sukhumvit lines.
“Hyatt Regency Bangkok Sukhumvit” has adjusted the service model by bringing “Khao Restaurant”, a Michelin-starred restaurant to open on the 4th floor of the hotel. The Spectrum, a rooftop bar in the heart of Sukhumvit will focus more on the Gen Y and LGBTQ market.
For "Sheraton Hua Hin Resort & Spa" and "Sheraton Hua Hin Pranburi Villas" has prepared a new beach bar serving Japanese food from Kisso restaurant from The Westin Grande Sukhumvit Hotel to be additional services.
In addition, "Sheraton Hua Hin Pranburi Villas" has prepared a plan to transform the service model into a private onsen pool villa to attract travelers who miss the atmosphere of soaking in an onsen with a private natural view in the room. Expected the Q4 of this year until the beginning of next year, the results of the operation of the 5 hotel groups will be able to come back to generate better income.
“However, moving forward with hotel business plans depends primarily on controlling the spread of COVID-19, and the government should expedite measures to tackle the epidemic situation, especially in 13 provinces that are maximum and strict control areas by accelerating the vaccination to complete 70% within Q3, including vaccine management guidelines by importing more alternative vaccines as soon as possible.”
