The Social Security and National Investment Trust (SSNIT) has announced plans to sell a 60% stake in several hotels as a strategic move to revive their financial performance.
The decision, which includes prominent establishments such as Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Ridge Royal Hotel, comes amidst concerns over management changes and procedural irregularities surrounding the sale process.
Addressing the media in Accra, SSNIT’s Director General, Kofi Bosompem Osafo-Maafo, defended the decision, citing persistent financial losses across the hotels despite previous attempts to improve profitability through external management.
“We’ve explored various options, including external management, but none have resolved these hotels’ financial challenges,” Osafo-Maafo explained. “Selling a majority stake to a strategic investor addresses these issues effectively.”
Osafo-Maafo highlighted that Labadi Beach Hotel, although recently profitable, was included in the sale due to SSNIT’s strategic objective to maximize returns. He emphasized the need to optimize capital deployment for better overall financial performance.
“The current returns from these hotels are below our expectations, and we have a responsibility to maximize returns for our stakeholders,” he stated. “Just as one would refurbish a house before selling it, we aim to maximize the value of these assets for reinvestment.”
Selling hotel shares is expected to attract private investors interested in revitalizing operations and optimizing profitability. SSNIT aims to reinvest the proceeds into more lucrative ventures to enhance overall returns and financial sustainability.
SSNIT’s move underscores a strategic shift toward leveraging private sector expertise and capital to reposition its hospitality assets amid ongoing operational challenges.
