'Struggling' Labadi Beach Hotel made profit of GH¢158m in 2023 - Ablakwa cites reports

North Tongu Member of Parliament, Samuel Okudzeto Ablakwa, has provided more evidence to back his position that the pending sale of some government assets to a minister of state was unjustified.

The said sale is in connection with plans by the Social Security and National Insurance Trust (SSNIT) which is seeking to divest its interests in four state-owned hotels to Rock City Hotels Limited, a company owned by agric minister, Bryan Acheampong.

In his latest publication on the matter, Ablakwa published financial and management statements of Labadi Beach Hotel covering a decade pointing out the high turnover and profits that the hotel had achieved.

Labadi Beach Hotel is one of the four hotels in which SSNIT is seeking to offload the state's majority shares. The others are La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort.

Ablakwa referenced annual reports by Delloite and concluded among others that Labadi Beach Hotel's profits alone could be used to support the other so-called struggling hotels if indeed they were at all struggling.

"The financials reveal that Labadi Beach Hotel has cash reserves in 5 bank accounts amounting to an impressive GHS54,855,795.00.

"Labadi Beach Hotel from the 2022 Deloitte financial statement had a turnover of GHS120,438,655. From the 2023 management account, this has commendably increased to GHS188,076,649.00," his post read in part.

The lawmaker also pointed out that the facility in 2022 "posted a gross profit of GHS70,734,099.00 — a figure which astonishingly more than doubled by 2023 to GHS158,490,448.00

"In addition to dividends, Labadi Beach Hotel over the last 5 years has paid a significant GHS20,318,232 in taxes to government," he added.

Meanwhile, the minister in question has denied that there was anything irregular with the purchase agreement that has yet to be finalized. He admits being a director of the company but explains that he is not involved in the day-to-day administration of Rock City.

Read Ablakwa's full post below:

I have finally secured the annual financial statements of Labadi Beach Hotel (Hotel Investments Ghana Limited) covering the last decade and been combing through the reports as prepared by the reputable Deloitte.

I have also intercepted the 2023 management account of Labadi Beach Hotel.

Incredibly, this is one of 6 hotels government says is struggling and desperately needs a strategic investor to inject capital and efficiency.

Contrary to the deceptive government/SSNIT narrative, the financials show that Labadi Beach Hotel is far more profitable than previously thought.

The financials reveal that Labadi Beach Hotel has cash reserves in 5 bank accounts amounting to an impressive GHS54,855,795.00.

Labadi Beach Hotel from the 2022 Deloitte financial statement had a turnover of GHS120,438,655. From the 2023 management account, this has commendably increased to GHS188,076,649.00.

Labadi Beach Hotel in 2022 posted a gross profit of GHS70,734,099.00 — a figure which astonishingly more than doubled by 2023 to GHS158,490,448.00

In addition to dividends, Labadi Beach Hotel over the last 5 years has paid a significant GHS20,318,232 in taxes to government.

Clearly, Labadi Beach Hotel is a cash cow and not a struggling hotel as government propagandists are claiming.

Anyone who takes over Labadi Beach Hotel alone can use its profitability to revamp all the hotels in SSNIT’s investment portfolio.

Probably the all-Ghanaian management of Labadi Beach Hotel should be asked to manage all of SSNIT’s hotels.

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!

SARA

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