SSNIT Mulls Private Sector Investment to Boost Hotel Portfolio Returns
The Social Security and National Insurance Trust (SSNIT) has suspended plans to sell a 60% stake in four of its hotel assets, including the Labadi Beach Hotel and La Palm Royal Beach Hotel, to Rock City Hotel, following significant backlash from labor unions.
The unions, which staged an indefinite strike, argued that the sale was not in the public interest.
In light of this, SSNIT’s Managing Director, Kofi Bosompem Osafo-Maafo, outlined a shift in strategy aimed at improving the performance of its hotel portfolio.
Speaking to reporters in Accra on Thursday, September 5, 2024, Mr Osafo-Maafo acknowledged that the returns from these properties had been underwhelming, prompting the Trust to explore alternative avenues for investment.
“We are revisiting our strategy, considering private sector involvement due to the sector’s substantial capital demands, which SSNIT cannot fully support,” he explained.
Mr Osafo-Maafo noted that SSNIT will re-evaluate its approach, factoring in the concerns of stakeholders, including labor unions, before deciding on the future of its hotel investments.
“We are looking at new ways to fund and enhance the portfolio, while being mindful of the interests of all involved parties,” he added.
