Royal Orchid Hotels Limited — Important, 02-06-2026: Disclosure of material issue

Royal Orchid Hotels (ROHL) has finalized the sale of its wholly-owned subsidiary, Multi Hotels Limited, to M/s Greenleaf Properties Limited for USD 3,412,500. The company received the final payment, completing the transaction and ceasing Multi Hotels Limited's subsidiary status.

**Issue:** Sale of a non-operational subsidiary.

**Possible Impact:** This strategic divestment generates a cash inflow for ROHL, allowing for potential capital reallocation. Since the subsidiary had not commenced operations, its direct financial contribution to ROHL's past results was negligible.

**Company’s Response/Mitigation Plan:** ROHL successfully completed the sale at an 'Arm’s Length Basis,' ensuring fair terms despite related-party interest from its Chairman & Managing Director, who also transferred his minor stake in the subsidiary.