SSNIT says sale of 60% shares only viable option to revive hotels
The Social Security and National Investment Trust (SSNIT) has addressed concerns regarding its decision to sell 60% of its shares in several hotels to a private investor, stating it was the most viable option to revive the organization’s fortunes.
SSNIT’s Director General, Kofi Bosompem Osafo-Maafo, clarified in a media address that the decision followed extensive due diligence. The hotels involved include Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Ridge Royal Hotel.
“We’ve been through quite a lengthy process. External management companies have run SSNIT hotels, but this hasn’t resolved the continuous losses,” Osafo-Maafo explained. “To resolve this, we are introducing a strategic investor.”
Osafo-Maafo noted that the hotels, except for Labadi Beach Resort, have not paid dividends due to their underperformance. Although Labadi Beach Resort has been profitable recently, the returns were still deemed insufficient. He emphasized that the inclusion of Labadi Beach Hotel in the sale was driven by the objective to optimize overall returns.
“We want to maximize what we get out of it. Just as you’d spruce up a house before selling it, there’s no reason why we shouldn’t sell a performing asset if it means better returns elsewhere,” he stated. “Returns are lower than we believe they should be, but cash has alternative uses. There’s a good investment rationale for this decision.”
