CPN Retail Growth Leasehold REIT (SET:CPNREIT) plans to sublease the Hilton Pattaya Hotel property to CPN Pattaya Hotel for three years from Jan. 1, 2027, to Dec. 31, 2029, under a proposed transaction worth up to 1.32 billion baht, according to a Monday filing to the Thai stock exchange.

The REIT manager's board on Monday approved submitting the proposal to unitholders for consideration on Nov. 19. The agreement comprises fixed rent of 882 million baht and potential variable rent of up to 441 million baht over the lease term.

CPN Pattaya Hotel was the sole bidder in the selection process. Both the company and CPNREIT are subsidiaries of Central Pattana, making the transaction a connected-party deal.

CPNREIT said the arrangement would ensure continued rental income from the 304-room hotel, which will remain operated by Hilton Worldwide Manage.