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HeadlineLabadi Beach Hotel made GHC158m profit in 2023, how can you sell...

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Labadi Beach Hotel made GHC158m profit in 2023, how can you sell this “cash cow”? – Ablakwa asks SSNIT

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North Tongu MP, Samuel Okudzeto Ablakwa, has raised significant concerns about the planned sale of a stake in Labadi Beach Hotel to Rock City Hotel, owned by Agriculture Minister Bryan Acheampong.

Mr Ablakwa asserts that the four-star Labadi Beach Hotel, which made a profit of GHC158 million in 2023, has sufficient resources to sustain its operations, making the sale unnecessary.

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In his evaluation of the hotel’s financial records, Ablakwa expressed confidence in Labadi Beach Hotel’s strong financial standing, suggesting it is in a better position than Rock City Hotel.

“Labadi Beach Hotel is a cash cow and not a struggling hotel as government propagandists are claiming,” Ablakwa stated.

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Labadi Beach Hotel is among three hotels that the Social Security and National Insurance Trust (SSNIT) considered selling.

Mr Ablakwa, who brought the deal to public attention, questioned why SSNIT would sell 60% of its stake in these profitable hotels to a minister. SSNIT has since clarified that the sale was opened to tender, and Rock City Hotel’s financial statements were the most favorable.

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Ablakwa further detailed the hotel’s robust financial health in a post on the X platform: “I have also intercepted the 2023 management account of Labadi Beach Hotel. The financials reveal that Labadi Beach Hotel has cash reserves in five bank accounts amounting to an impressive GHS54,855,795.00.”

According to the 2022 Deloitte financial statement, Labadi Beach Hotel had a turnover of GHS120,438,655, which commendably increased to GHS188,076,649.00 in 2023. The hotel’s gross profit also more than doubled from GHS70,734,099.00 in 2022 to GHS158,490,448.00 in 2023.

In addition to its profits, Labadi Beach Hotel has contributed significantly to the government’s revenue through taxes, paying GHS20,318,232 over the last five years. Ablakwa emphasized, “Anyone who takes over Labadi Beach Hotel alone can use its profitability to revamp all the hotels in SSNIT’s investment portfolio.”

Ablakwa suggested that the all-Ghanaian management team of Labadi Beach Hotel should be considered to manage all of SSNIT’s hotels, given their demonstrated efficiency and success. He concluded by stating, “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!”

The planned sale has stirred a debate about the future of SSNIT’s investments and the strategic decisions surrounding profitable national assets.

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