The Social Security and National Insurance Trust (SSNIT) plans to expand the Labadi Beach Hotel, citing the facility’s strong financial performance and its position as one of the Trust’s most successful investments.
Director-General of SSNIT, Kwasi Afreh Biney, disclosed on Joy News’ PM Express Business Edition recently that discussions are already underway to increase the number of rooms at the hotel.
He also dismissed suggestions that SSNIT was considering bringing in a strategic investor or selling stakes in the hotel.
“Let me assure the people of Ghana that we will not sell any of our hotel investments,” he said.
Mr Afreh Biney described Labadi Beach Hotel as one of SSNIT’s best-performing assets, noting that it has consistently paid dividends to the Trust.
“Labadi Beach Hotel is one of our best investments. In fact, they have consistently paid dividends year in and year out. Last year alone, based on 2024 numbers, they paid us ¢17.8 million in dividends for the year 2024, but they paid it last year,” he stated.
According to him, SSNIT expects an even stronger payout this year after the hotel posted another impressive financial performance.
“This year we expect the dividend to be paid by Labadi to be higher once their accounts are audited to be higher than they paid last year.
“Last year they made a PBT in excess of ¢67 million with a profit after tax of in excess of 50 million, so clearly if you go by their dividend payout ratio of 40%, they will pay higher than they did the previous year,” he said.
The SSNIT Director-General said the hotel’s financial position is so strong that it does not require external investors to inject fresh capital.
“There is no, absolutely no conversation anywhere about Labadi Beach Hotel. Absolutely, why hotel? When Labadi can even go to a bank today and borrow, because Labadi has one of the best balance sheets,” he stressed.
“So, even if they decide not to come to SSNIT for funds and decide to go to the financial market, they will be successful. If you make a decision to let Labadi Beach Hotel go on the stock exchange today, they will be successful.”
Mr Afreh Biney said SSNIT’s strategy is to support investments that are performing strongly rather than divest from them.
“To the contrary, we are actually engaging Labadi on expanding Labadi, the number of rooms that Labadi has. There are conversations today to expand Labadi, so it should tell you that where our investee companies are doing well, we are prepared to support and would make sure that we protect the workers’ funds that we hold in the fight,” he said.
He contrasted Labadi’s performance with some hotels under the Golden Beach Group, including La Palm, Elmina and Busua, which are undergoing turnaround efforts.
However, he reiterated that SSNIT has no intention of disposing of any of its hotel assets.
“We will not sell La Palm,” he said.
