Royal Orchid Hotels completes sale of Multi Hotels for USD 3.41 million

Royal Orchid Hotels Limited has completed the sale of its wholly owned subsidiary, Multi Hotels Limited, to Greenleaf Properties Limited for a total consideration of USD 3,412,500. The transaction concluded on June 2, 2026, following the receipt of the final installment. Consequently, Multi Hotels Limited has ceased to be a subsidiary of Royal Orchid Hotels Limited with effect from June 2, 2026.

The Share Purchase Agreement for the sale was executed on January 29, 2026. The buyer, Greenleaf Properties Limited, is a company registered in Tanzania and does not belong to the promoter or promoter group of Royal Orchid Hotels Limited. The target entity, Multi Hotels Limited, belongs to the hospitality industry and had not commenced operations during the last financial year.

The transaction involved multiple parties, including Mr. Chander Kamal Baljee, Chairman and Managing Director of Royal Orchid Hotels Limited, who held 3.33% shares in Multi Hotels Limited. He transferred his shareholding to Mr. Abdulhamid Haroon Pirmohamed as part of the agreement. The transaction was conducted at arm's length, despite the involvement of related parties such as Mrs. Sunita Baljee and Mr. Keshav Baljee, who are directors of the company.

Transaction Details

Detail	Information
Name of Target	Multi Hotels Limited
Date of Agreement	January 29, 2026
Date of Completion	June 2, 2026
Sale Consideration	USD 3,412,500
Buyer	Greenleaf Properties Limited
Industry	Hospitality

The disclosure was made in accordance with Regulation 30 read with Schedule III Part A Para A (1) of the SEBI (LODR) Regulations, 2015. The sale was not pursuant to a scheme of arrangement.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.18%	-1.92%	-6.13%	-22.34%	-9.22%	+282.73%

Royal Orchid Hotels has received an order from the Hon'ble High Court of Rajasthan, Jaipur Bench, appointing a Sole Arbitrator to resolve a long-standing dispute. The order, dated May 26, 2026, designates Hon'ble Mr. Justice Ajay Rastogi, a former Judge of the Supreme Court of India, to adjudicate the matter between Tambi & Others and Royal Orchid Hotels Limited & Others. The company received the official communication on May 31, 2026.

The legal proceedings stem from Arbitration Application No. 16/2023, which relates to disputes arising under a Memorandum of Understanding (MoU) executed on April 18, 2007. The MoU involves the company's associate entity, Ksheer Sagar Developers Private Limited. The High Court allowed the application under Section 11 of the Arbitration and Conciliation Act, 1996, leaving all issues raised by the parties open for adjudication before the arbitrator.

Key Details of the Order

The disclosure filed under Regulation 30 of the SEBI (LODR) Regulations, 2015, outlines the specifics of the court's directive. The following table summarizes the critical information regarding the arbitration proceedings:

Particulars	Information
Name of the authority	Hon'ble High Court of Rajasthan, Jaipur Bench
Nature of action	Appointment of Hon'ble Mr. Justice Ajay Rastogi (Former Judge, Supreme Court of India) as Sole Arbitrator to adjudicate disputes between Tambi & Others vs Royal Orchid Hotels Limited & Others.
Date of order	May 26, 2026
Date of receipt	May 31, 2026
Financial impact	Unable to quantify at this stage; order is procedural in nature.

Impact Assessment

Management stated that the order is procedural in nature as it pertains solely to the appointment of the arbitrator. Consequently, the company is currently unable to quantify any financial impact that may arise from the proceedings. Royal Orchid Hotels intends to defend its position appropriately during the arbitral process. The filing further notes that there are no negative operational implications, as the status quo remains unchanged for both parties involved.