The Social Security and National Insurance Trust (SSNIT) is actively seeking strategic investors for three financially troubled hotels: La Palm Beach Hotel, Elmina Beach Resort, and Busua Beach Hotel. The Director General of SSNIT, Kwesi Afreh Biney, made this disclosure when he appeared before the Public Accounts Committee (PAC) on Friday, November 7, 2025.
While these three properties continue to struggle, other SSNIT owned hotels are showing signs of recovery and do not currently require external investment. Biney told the committee that SSNIT Guest House, Ridge Royale, and Labadi Beach Hotel should be allowed to run independently without strategic investor involvement.
Labadi Beach Hotel generated over 80 million dollars in profit in 2024 alone, demonstrating the contrasting performance levels across the Trust’s hospitality portfolio. The successful performance of Labadi Beach Hotel has convinced SSNIT management that some properties can thrive without outside investment partnerships.
The announcement comes after intense public scrutiny surrounding SSNIT’s 2024 attempt to sell a 60 percent stake in four hotels to Rock City Hotel Limited, a company owned by then Minister of Food and Agriculture and Member of Parliament for Abetifi, Dr Bryan Acheampong. The proposed deal sparked widespread backlash, with critics, including the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, raising concerns about transparency and potential conflicts of interest.
Following the controversy, Rock City Hotel withdrew its bid, prompting SSNIT to reassess its strategy for managing underperforming assets. The original proposal included La Palm Beach Hotel, Labadi Beach Hotel, Ridge Royale Hotel, and Elmina Beach Resort in the sale package.
Historical data reveals the depth of financial challenges facing the three hotels now targeted for strategic investment. La Palm recorded losses in 11 out of the past 14 years and has not paid dividends in all its years of operation. Elmina Beach made losses in nine out of the past 14 years and has never paid dividends, while Busua Beach recorded losses in nine out of the past 14 years without paying any dividends.
SSNIT made total payments, including shareholder loans of 233.8 million cedis for La Palm, Elmina, and Busua. However, the Trust has received no return on equity in the form of dividends on this amount, and none of the loans have been serviced. Outstanding amounts owed to SSNIT also include workers’ SSNIT contributions that have not been remitted.
The average five year profitability figures paint a stark picture. While Labadi Beach averaged 18 million cedis, La Palm Royal Beach managed 6.7 million cedis, and Ridge Royal posted 5 million cedis. In contrast, Elmina Beach recorded just 740,604 cedis, while Busua Beach managed only 32,268 cedis.
Biney previously disclosed that La Palm Royal Beach Hotel requires redevelopment and that discussions are ongoing with potential partners to explore viable options. He emphasized these engagements are not intended to result in a sale. The Director General noted that La Palm has great potential, and SSNIT is currently reviewing several early stage proposals to transform it into one of the most attractive hotels in the country.
For Elmina Beach Resort, SSNIT remains open to strategic partnerships with experienced hospitality operators to support redevelopment. Plans include leveraging the town’s Portuguese colonial heritage through an initiative called “the Elmina Experience” to attract tourists and improve the facility’s financial performance.
The Trust operates a defined benefit scheme guaranteed by the government. Biney stressed that contributors’ pensions remain secure despite the challenges facing some hotel investments. This defined benefit structure means pension payments are not directly dependent on the performance of individual assets like the struggling hotels.
The search for strategic investors represents SSNIT’s latest attempt to address longstanding underperformance in parts of its hospitality portfolio while protecting the interests of pensioners and contributors to Ghana’s national pension scheme.
Source: newsghana.com.gh
