Sunday, August 3, 2025

SSNIT Explores New Strategies to Boost Hotel Returns After Suspended Stake Sale

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

The decision to suspend the sale came after nationwide unrest led by labor unions, who initiated an indefinite strike to protest the proposed sale, arguing that it was not in the public’s best interest.

 

Addressing journalists in Accra on Thursday, SSNIT’s Managing Director, Kofi Bosompem Osafo-Maafo, emphasized the Trust’s commitment to improving the profitability of its hotels, despite the suspension of the stake sale. He explained that SSNIT is now re-evaluating its approach to managing its hotel assets and looking for alternative ways to generate higher returns.

 

“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 investment, which we cannot fund,” Osafo-Maafo said.

 

He further noted that SSNIT is considering various options to enhance the performance of its hotel portfolio, acknowledging that the decision to suspend the sale was influenced by the need to accommodate the concerns of its stakeholders, including labor unions. “We have to look at new ways of funding it or improving the portfolio, and obviously, there were disagreements on how we achieve that. Taking into account the interest of our stakeholders, i.e., the unions and all other stakeholders, we’ve gone back to the drawing board, and in time we would look at the way we progress,” he added.

 

The sale of the 60% stake in SSNIT’s hotels had sparked significant controversy, with labor unions and other stakeholders questioning the transparency and rationale behind the decision. The unions argued that the sale was not in the best interest of the public and could potentially compromise the long-term viability of SSNIT’s assets. The indefinite strike by labor unions added further pressure on SSNIT to reconsider its decision and seek alternative strategies to boost the profitability of its hotel holdings.

 

SSNIT, which owns several hotels across Ghana, including prominent establishments like Labadi Beach Hotel, La Palm Royal Beach Hotel, Elmina Beach Resort, and Ridge Royal Hotel, has been seeking ways to enhance returns from its investments. The Trust has faced challenges in managing these assets, with some of the hotels reportedly underperforming and failing to generate expected returns.

 

Osafo-Maafo acknowledged these challenges and reiterated that SSNIT is committed to finding sustainable solutions to improve the performance of its hotel portfolio. He emphasized the need for private sector investment to inject much-needed capital and expertise into the management of these properties. “We have to bring in private sector players who have the experience and the capital to help turn things around. Our goal is to make these hotels profitable and sustainable in the long term,” he explained.

 

He further mentioned that SSNIT would explore different partnership models, including joint ventures, management contracts, and lease agreements, to attract private sector participation. “We are considering various options that will allow us to leverage private sector expertise while retaining some level of control over the assets. This approach will help us maximize returns while ensuring that the interests of all stakeholders are protected,” Osafo-Maafo said.

 

The Managing Director also noted that the Trust is engaging with stakeholders, including labor unions, employees, and other interested parties, to ensure that their concerns are adequately addressed in the new strategy. “We understand the concerns raised by the unions and other stakeholders, and we are committed to working with them to find the best way forward. Our priority is to protect the interests of our contributors and ensure that SSNIT’s assets are managed in a way that maximizes value,” he added.

 

Osafo-Maafo highlighted that SSNIT’s revised strategy would focus on improving operational efficiency, reducing costs, and enhancing the overall customer experience at its hotels. He stated that the Trust would undertake a comprehensive review of its hotel operations to identify areas where improvements can be made. “We need to ensure that our hotels are run efficiently and that they offer high-quality services that attract both local and international guests. This will help us improve occupancy rates and boost revenue,” he said.

 

He concluded by assuring the public that SSNIT remains committed to its mandate of protecting the pensions and investments of its contributors. “Our priority is to ensure that the Trust remains financially strong and that we continue to provide value to our contributors. We will do everything necessary to make our investments, including our hotels, profitable and sustainable,” he emphasized.

 

As SSNIT explores new strategies to boost returns from its hotels, the Trust is expected to unveil a detailed plan in the coming months outlining its approach to managing its hotel assets and addressing stakeholder concerns. The outcome of this new direction will be closely watched by both industry players and the public, given the significant impact of SSNIT’s investments on Ghana’s hospitality sector.

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