Director-General of the Social Security and National Insurance Trust (SSNIT), Kwasi Afreh Biney, says La Palm Royal Beach Hotel has returned to profitability for the first time in
The report indicates that director-General of the Social Security and National Insurance Trust (SSNIT), Kwasi Afreh Biney, says La Palm Royal Beach Hotel has returned to profitability for the first time in years.
It further notes that he described the development as an early sign that efforts to revive some of the Trust’s struggling hotel investments are beginning to work.
Speaking on Joy News’ PM Express Business Edition recently, Mr Afreh Biney insisted that SSNIT has no intention of selling any of its hotel investments despite ongoing efforts to improve its performance.
“Let me assure the people of Ghana that we will not sell any of our hotel investments,” he said.
He noted that while some of SSNIT’s hospitality assets continue to face challenges, others remain among the Trust’s strongest investments.
“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 ¢17.8 million in dividends for the year 2024, but they paid it last year.”
According to him, Labadi Beach Hotel is expected to improve on that performance once its accounts are audited.
“This year we expect the dividend to be paid by Labadi to be higher once their accounts are audited to be higher than they paid last year.
“Last year they made a PBT in excess of ¢67 million with a profit after tax of in excess of 50 million, so clearly if you go by their dividend payout ratio of 40%, they will pay higher than they did the previous year,” he said.
Mr Afreh Biney acknowledged that the Golden Beach Group, comprising the La Palm, Elmina, and Busia hotels, remains under pressure.
“The Golden Beach Group, which consists of La Palm, Elmina, and Busia, is challenged, so whilst we’ve sat with the board and management and strategised on the turnaround, we felt that we also needed technical insight and expertise from consultants.”
He stated SSNIT has advertised for consultants to submit proposals on how to return the hotels to profitability within five years and is currently evaluating the bids.
Even before the consultants complete their work, he said, measures introduced by management are already producing results.
“La Palm last year, for the first time in fact, we don’t even remember the last time La Palm made a profit, made a profit. It may be small, ¢1.8 million, but at least bigger things start with humble beginnings. The turnaround process is beginning now.”
