Royal Orchid Hotels Limited has informed the Exchange about Agreements
ROHLTD · price
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Awaiting price reaction for this filing.
Royal Orchid Hotels has renewed the land lease for its flagship Hotel Royal Orchid in Bengaluru with Karnataka State Tourism Development Corporation (KSTDC) for 29 years and 6 months, effective April 1, 2025. The lease covers a 2 acre 19 guntas property, with rent set at 2% of the gross income generated from the property. The company's promoter and CMD, Mr. Chander K Baljee, co-executed the agreement, making it a related-party transaction. The company has stated there is no impact on management or control, and no shares are being issued as part of this deal. This essentially secures the long-term operational continuity of the Bengaluru hotel, which is one of the company's key properties.
Positive for shareholders as the long lease renewal provides revenue visibility and operational stability for the Bengaluru property, though the related-party nature of the signing may draw some scrutiny. The 2% gross revenue rent model keeps costs tied to performance.