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BusinessLabadi Beach Hotel, deemed 'struggling' achieved GHS158m profit in 2023 - Ablakwa

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Labadi Beach Hotel, deemed ‘struggling’ achieved GHS158m profit in 2023 – Ablakwa

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Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has presented additional evidence supporting his stance against the proposed sale of government assets to a state minister.

The proposed sale is related to Social Security and National Insurance Trust’s (SSNIT) intention to sell its stakes in four state-owned hotels to Rock City Hotels Limited, owned by Bryan Acheampong, the Minister of Agriculture.

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In his latest statement on the issue, Ablakwa released financial and management reports of Labadi Beach Hotel spanning a decade, highlighting the hotel’s significant turnover and profits.

Labadi Beach Hotel is one of the four hotels in which SSNIT plans to sell the majority of the state’s shares. The other hotels are La Palm Royal Beach Resort, Ridge Royal Hotel, and Elmina Beach Resort.

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Ablakwa referenced annual reports by Deloitte and concluded, among other points, that the profits generated by Labadi Beach Hotel alone could potentially support the other supposedly struggling hotels, if they were indeed struggling.

“The financials reveal that Labadi Beach Hotel has cash reserves in 5 bank accounts amounting to an impressive GHS54,855,795.00.

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“Labadi Beach Hotel from the 2022 Deloitte financial statement had a turnover of GHS120,438,655. From the 2023 management account, this has commendably increased to GHS188,076,649.00,” his post read in part.

The lawmaker also pointed out that the facility in 2022 “posted a gross profit of GHS70,734,099.00 — a figure which astonishingly more than doubled by 2023 to GHS158,490,448.00

“In addition to dividends, Labadi Beach Hotel over the last 5 years has paid a significant GHS20,318,232 in taxes to government,” he added.

Meanwhile, the minister in question has denied that there was anything irregular with the purchase agreement that has yet to be finalized. He admits being a director of the company but explains that he is not involved in the day-to-day administration of Rock City.

Read Ablakwa’s full post below:

I have finally secured the annual financial statements of Labadi Beach Hotel (Hotel Investments Ghana Limited) covering the last decade and been combing through the reports as prepared by the reputable Deloitte.

I have also intercepted the 2023 management account of Labadi Beach Hotel.

Incredibly, this is one of 6 hotels government says is struggling and desperately needs a strategic investor to inject capital and efficiency.

Contrary to the deceptive government/SSNIT narrative, the financials show that Labadi Beach Hotel is far more profitable than previously thought.

The financials reveal that Labadi Beach Hotel has cash reserves in 5 bank accounts amounting to an impressive GHS54,855,795.00.

Labadi Beach Hotel from the 2022 Deloitte financial statement had a turnover of GHS120,438,655. From the 2023 management account, this has commendably increased to GHS188,076,649.00.

Labadi Beach Hotel in 2022 posted a gross profit of GHS70,734,099.00 — a figure which astonishingly more than doubled by 2023 to GHS158,490,448.00

In addition to dividends, Labadi Beach Hotel over the last 5 years has paid a significant GHS20,318,232 in taxes to government.

Clearly, Labadi Beach Hotel is a cash cow and not a struggling hotel as government propagandists are claiming.

Anyone who takes over Labadi Beach Hotel alone can use its profitability to revamp all the hotels in SSNIT’s investment portfolio.

Probably the all-Ghanaian management of Labadi Beach Hotel should be asked to manage all of SSNIT’s hotels.

I am more convinced that this deal is not in our collective interest.

Hands off our SSNIT hotels or get ready for our June 18 DEMO!

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