SSNIT explores new strategies to boost hotel returns after sale suspension

The Social Security and National Insurance Trust (SSNIT) is considering new strategies to improve returns from its hotels following the suspension of a planned sale of a 60 per cent stake in four of its properties, including the Labadi Beach Hotel and La Palm Royal Beach Hotel, to Rock City Hotel.
The decision to suspend the sale came amid widespread unrest and an indefinite strike by labor unions across the country, who argued that the sale was not in the public’s best interest.
Speaking to journalists in Accra on Thursday, 5 September 2024, SSNIT’s Managing Director, Kofi Bosompem Osafo-Maafo, emphasised the Trust's commitment to enhancing the profitability of its hotel investments.
"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 investments which we cannot fund," Mr. Osafo-Maafo said.
He added that SSNIT is re-evaluating its approach to funding and improving its hotel portfolio, taking into account the concerns of all stakeholders.
"We have to look at new ways of funding it or improving the portfolio, and obviously there were disagreements on how we achieve that. So, with the disagreement and taking into account the interest of our stakeholders, i.e., the unions and all the other stakeholders, we’ve gone back to the drawing board, and in time, we will look at the way we progress," Mr. Osafo-Maafo noted.
Source: classfmonline.com
Trending Business
Calls mount for completion of Saglemi Housing Project under new minister’s leadership
14:00ARDA to showcase achievements in petroleum downstream sector in April
13:36Prof. Ransford Gyampo appointed as Acting CEO of Ghana Shippers Authority
12:02Angela List reaffirms shareholder and director position at BCM International
06:50W/R: President Mahama pledges to complete stalled Takoradi Market Circle project
11:08Ben Asante steps down as CEO of Ghana National Gas Company
10:31CEMSE raise concerns over high number of filling stations on NPA register, calls for reforms
15:50Former SIC MD refuses to hand over, locks up office and bolts with keys
15:26KSK Group of Companies dissolves board of directors
14:54GIPC recognises CMG for outstanding contribution to media, business
15:19