SSNIT plans expansion of Labadi Beach Hotel, rules out sale of hotel assets

The Social Security and National Insurance Trust (SSNIT) has announced plans to expand Labadi Beach Hotel, citing the facility’s strong financial performance and continued contribution to the Trust’s investment portfolio.

Speaking on Joy News’ PM Express Business Edition, SSNIT Director-General, Kwasi Afreh Biney, revealed that discussions are underway to increase the hotel’s room capacity as part of efforts to enhance its profitability and long-term value.

He firmly dismissed claims that SSNIT was considering selling its stake in the hotel or bringing in a strategic investor.

“Let me assure the people of Ghana that we will not sell any of our hotel investments,” Mr. Afreh Biney stated.

According to him, Labadi Beach Hotel remains one of SSNIT’s most successful investments, consistently delivering strong returns through annual dividend payments.

“Labadi Beach Hotel is one of our best investments. They have consistently paid dividends year after year. Based on their 2024 performance, they paid SSNIT GH¢17.8 million in dividends,” he said.

The Director-General noted that the Trust anticipates a higher dividend payout this year following another impressive financial performance by the hotel.

He disclosed that Labadi Beach Hotel recorded a profit before tax exceeding GH¢67 million and a profit after tax of more than GH¢50 million last year. Based on the hotel’s dividend payout ratio of 40 per cent, SSNIT expects a larger dividend than the previous year once the accounts are audited.

Mr. Afreh Biney stressed that the hotel’s strong financial position eliminates any need for external investors to provide capital.

“There is absolutely no conversation about bringing in investors for Labadi Beach Hotel. The hotel has one of the strongest balance sheets and can independently access financing from the banking sector or capital markets if necessary,” he explained.

He added that the hotel would likely attract significant investor interest should it ever be listed on the stock exchange, highlighting its financial strength and market appeal.

Rather than divesting from successful investments, SSNIT’s strategy, he said, is to support and grow businesses that are performing well.

“To the contrary, we are engaging management on plans to expand Labadi Beach Hotel. These discussions demonstrate our commitment to supporting profitable investments and protecting the contributions of Ghanaian workers entrusted to us,” he noted.

Mr. Afreh Biney contrasted Labadi Beach Hotel’s performance with some properties within the Golden Beach Hotels Group, including La Palm Royal Beach Hotel, Elmina Beach Resort and Busua Beach Resort, which are currently undergoing restructuring and turnaround initiatives.

Despite the challenges facing some of these facilities, he reiterated that SSNIT has no plans to dispose of any of its hotel investments.

“We will not sell La Palm,” he emphasized.

The planned expansion of Labadi Beach Hotel underscores SSNIT’s confidence in the hospitality sector and its commitment to strengthening investments that continue to generate sustainable returns for contributors.

Prince Antwi

See Full Bio