Labadi Beach Hotel made GHC158m profit in 2023. How can you sell this ‘cash cow’? – Ablakwa asks SSNIT

By Majesty 3 Min Read

Samuel Okudzeto Ablakwa, the MP for North Tongu, has expressed major concerns regarding the proposed sale of a portion of the Labadi Beach Hotel to Bryan Acheampong, the Minister of Agriculture. 

According to Mr. Ablakwa, the four-star Labadi Beach Hotel, which turned a profit of GHC 158 million in 2023, has enough cash on hand to continue operating, negating the need for the sale. 

Ablakwa expressed confidence in Labadi Beach Hotel’s solid financial condition and suggested it is in a better situation than Rock City Hotel in his assessment of the hotel’s financial records. 

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Ablakwa declared, “The Labadi Beach Hotel is a cash cow, not a struggling hotel as government propagandists are claiming. 

Three hotels were under consideration for sale by the Social Security and National Insurance Trust (SSNIT), including the Labadi Beach Hotel. The deal was made public by Mr. Ablakwa, who questioned why SSNIT would sell a minister 60% of its valuable hotel holdings. 

Since then, SSNIT has made it clear that Rock City Hotel’s financial results were the most favourable and that the property was put up to bid.

In a post on the X platform, Ablakwa provided additional information about the hotel’s sound financial standing, saying, “I have also intercepted the Labadi Beach Hotel’s 2023 management account.

The Labadi Beach Hotel has impressive cash reserves of GHS54,855,795.00 spread across five bank accounts, according to the financials. 

The Labadi Beach Hotel had a turnover of GHS120,438,655 in 2022, which climbed admirably to GHS188,076,649.00 in 2023, according to the Deloitte financial statement for 2022. 

Additionally, from GHS70,734,099.00 in 2022 to GHS158,490,448.00 in 2023, the hotel’s gross profit more than doubled. Apart from its earnings, Labadi Beach Hotel has made a substantial tax payment to the government, amounting to GHS20,318,232 in the past five years. 

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

Given their track record of success and efficiency, Ablakwa recommended that the Labadi Beach Hotel’s all-Ghanaian management staff be given consideration for managing all of SSNIT’s hotels. 

I am more convinced that this deal is not in our collective interest,” he said in closing. Give up our SSNIT hotels and get ready for our demo on June 18! A discussion concerning SSNIT’s future investments and the strategic choices pertaining to profitable national assets has been sparked by the anticipated sale.

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