SSNIT explores new strategies to boost hotel returns after sale suspension

The Social Security and National Insurance Trust (SSNIT) is considering new strategies to improve returns from its hotels following the suspension of a planned sale of a 60 per cent stake in four of its properties, including the Labadi Beach Hotel and La Palm Royal Beach Hotel, to Rock City Hotel.

The decision to suspend the sale came amid widespread unrest and an indefinite strike by labor unions across the country, who argued that the sale was not in the public’s best interest.

Speaking to journalists in Accra on Thursday, 5 September 2024, SSNIT’s Managing Director, Kofi Bosompem Osafo-Maafo, emphasised the Trust's commitment to enhancing the profitability of its hotel investments.

"We are going back to the drawing board. We are looking at private sector investments into the hotels for a very good reason: the returns were below par, and when the returns are below par, it is in a sector that requires a significant amount of investments which we cannot fund," Mr. Osafo-Maafo said.

He added that SSNIT is re-evaluating its approach to funding and improving its hotel portfolio, taking into account the concerns of all stakeholders.

"We have to look at new ways of funding it or improving the portfolio, and obviously there were disagreements on how we achieve that. So, with the disagreement and taking into account the interest of our stakeholders, i.e., the unions and all the other stakeholders, we’ve gone back to the drawing board, and in time, we will look at the way we progress," Mr. Osafo-Maafo noted.