SSNIT Hotels Fail to Pay Dividends Despite GH₵233.8m Investment

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Ssnit
Ssnit

It has come to light that five out of the six hotels that the Social Security and National Insurance Trust (SSNIT) plans to sell a 60% stake in have not paid their debts or dividends to SSNIT in the past five years.

This raises concerns about the sustainability and profitability of these properties.

The hotels—La Palm Royal Beach Hotel, Elmina Beach Resort, Busua Beach Resort, Ridge Royal Hotel, and Trust Lodge—have struggled to fund maintenance capital expenditure, with only Labadi Beach Hotel managing to pay dividends totaling GH₵48.1 million over the last five years.

Despite SSNIT’s significant investments, including GH₵233.8 million in loans and payments to La Palm, Elmina, and Busua, the Trust has not received any return on equity in the form of dividends, and none of the loans have been serviced.

Labadi Beach Hotel, the exception, has managed to pay dividends to SSNIT, but the other hotels have faced challenges, with negative average returns on equity ranging from negative 4.8% to negative 33.1% for various periods.

These revelations raise questions about the management and financial viability of these hotels, and suggest that restructuring and improved management practices may be necessary to ensure their long-term profitability and sustainability.

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