The Social Security and National Insurance Trust (SSNIT) is considering an expansion of Labadi Beach Hotel, citing the facility’s strong financial performance and status as one of the Trust’s most profitable investments.
Speaking on Joy News’ PM Express Business Edition, SSNIT Director-General Kwasi Afreh Biney revealed that discussions are already underway to increase the hotel’s room capacity to meet growing demand and strengthen returns.
He also dismissed speculation that SSNIT was considering selling part of 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 has consistently delivered strong returns and remains one of SSNIT’s best-performing assets.
“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 GH¢17.8 million in dividends,” he said.
Mr. Afreh Biney indicated that the Trust expects an even 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 in the previous financial year.
“Based on their dividend payout ratio of 40 per cent, they are expected to pay a higher dividend than they did the previous year once their accounts are audited,” he explained.
The SSNIT Director-General stressed that the hotel’s financial strength eliminates the need for external investors to provide capital.
“There is absolutely no conversation anywhere about bringing in investors for Labadi Beach Hotel. Labadi can even go to a bank today and borrow because it has one of the strongest balance sheets,” he said.
He added that the hotel would be well-positioned to raise capital independently through the financial markets if needed.
“If Labadi Beach Hotel were listed on the stock exchange today, it would be successful,” he noted.
Mr. Afreh Biney said SSNIT’s investment strategy is focused on supporting high-performing assets rather than divesting from them.
“To the contrary, we are engaging Labadi on expanding the number of rooms it has. Those discussions are ongoing. Where our investee companies are doing well, we are prepared to support them and ensure that we protect the workers’ funds entrusted to us,” he stated.
He contrasted Labadi Beach Hotel’s strong performance with some hotels under the Golden Beach Group, including La Palm Royal Beach Hotel, Elmina Beach Resort and Busua Beach Resort, which are currently undergoing turnaround and restructuring efforts.
Despite the challenges facing some of its hospitality assets, Mr. Afreh Biney reiterated that SSNIT has no plans to dispose of any of its hotel investments.
“We will not sell La Palm,” he emphasized.
