Labadi Beach Hotel has demonstrated substantial financial success, raising questions about the rationale behind selling a stake to Rock City Hotel.
North Tongu MP, Samuel Okudzeto Ablakwa, has criticized the proposed sale, citing the hotel’s strong financial standing and profitability.
In 2023, Labadi Beach Hotel posted a remarkable GHS158 million profit, reflecting its robust performance. Mr Ablakwa argues that the hotel has ample resources to sustain its operations without needing to sell a stake to Rock City Hotel.
He asserts that Labadi Beach Hotel is in a better financial position than Rock City Hotel, based on careful evaluation of its financial records.
The hotel, which boasts a four-star rating, is one of three hotels that the Social Security and National Insurance Trust (SSNIT) nearly sold to Rock City Hotel, owned by MP and Agriculture Minister Bryan Acheampong. Mr Ablakwa, who exposed the deal, questions why SSNIT would sell 60% of its stake in these hotels to a government minister.
![](https://thefeatherpost.com/wp-content/uploads/2024/05/Samuel-Okudzeto-Ablakwa-and-Bryan-Acheampong.jpg)
SSNIT has clarified that it opened a tender for the sale of its stake, and Rock City Hotel presented the best financial statements. However, Ablakwa remains unconvinced. In a post on the X platform, he highlighted the hotel’s impressive financial performance:
“I have also intercepted the 2023 management account of Labadi Beach Hotel. Incredibly, this is one of six hotels the government says is struggling and desperately needs a strategic investor to inject capital and efficiency. Contrary to the deceptive government/SSNIT narrative, the financials show that Labadi Beach Hotel is far more profitable than previously thought.”
The financial records reveal that Labadi Beach Hotel has cash reserves in five bank accounts amounting to GHS54,855,795.00. The hotel’s turnover increased from GHS120,438,655 in 2022 to GHS188,076,649 in 2023. Additionally, the hotel posted a gross profit of GHS70,734,099.00 in 2022, which more than doubled to GHS158,490,448.00 in 2023. Over the past five years, Labadi Beach Hotel has also paid GHS20,318,232 in taxes to the government.
I have finally secured the annual financial statements of Labadi Beach Hotel (Hotel Investments Ghana Limited) covering the last decade and been combing through the reports as prepared by the reputable Deloitte.
I have also intercepted the 2023 management account of Labadi Beach… pic.twitter.com/pfJ16IaYBD
— Sam Okudzeto Ablakwa (@S_OkudzetoAblak) May 29, 2024
Ablakwa emphasized that Labadi Beach Hotel is a “cash cow” and not a struggling hotel as claimed by government propagandists.
He believes that anyone taking over the hotel could use its profitability to revamp all the hotels in SSNIT’s investment portfolio. He suggested that the all-Ghanaian management team of Labadi Beach Hotel should be tasked with managing all of SSNIT’s hotels.
“I am more convinced that this deal is not in our collective interest. Hands off our SSNIT hotels or get ready for our June 18 DEMO!” Ablakwa warned.
As the debate continues, the proposed sale of Labadi Beach Hotel remains a contentious issue, with Ablakwa and others calling for a reevaluation of the decision in light of the hotel’s impressive financial performance.