SSNIT Seeks Strategic Investors for La Palm, Elmina, and Busia Hotels Amid Ongoing Financial Struggles

The Social Security and National Insurance Trust (SSNIT) says it is still seeking strategic investors for three of its struggling hotels — La Palm Royal Beach Hotel, Elmina Beach Resort, and Busia Beach Resort — as part of efforts to restore profitability and reduce operational losses.

The three hotels were part of a broader divestiture plan announced in 2024, under which SSNIT intended to sell 60 percent of its stake in six hotels to private investors. The plan, however, was suspended following intense public backlash from workers’ unions, who raised concerns about transparency, valuation, and the potential involvement of politically exposed persons.

New SSNIT Boss Confirms Investor Search

Appearing before the Public Accounts Committee (PAC) of Parliament, the newly appointed Director-General of SSNIT, Kwesi Afreh Biney, confirmed that the Trust is still exploring investment partnerships for the three struggling properties.

“The three hotels are struggling. We are seeking for a strategic investor for La Palm, Elmina Beach Resort, and Busia,”
— Kwesi Afreh Biney, Director-General, SSNIT.

He clarified that other SSNIT-owned properties — namely the SSNIT Guesthouse, Ridge Royale Hotel, and Labadi Beach Hotel — remain financially sound and will continue operating under SSNIT’s management without external investors.

“For SSNIT Guesthouse, Ridge Royale, and Labadi Beach Hotel, we do not intend to seek any strategic investors. We believe that those three hotels should be allowed to run on their own and make profit. Labadi Beach Hotel, for instance, in 2024, made profits in excess of 80 million Ghana cedis,”
— Mr. Biney added.

Background: The 2024 Hotel Sale Controversy

In 2024, SSNIT’s proposed plan to sell majority shares in six of its hotels, including Labadi Beach and La Palm Royal Beach, sparked widespread public criticism. Labour unions, civil society groups, and sections of the political opposition accused SSNIT of acting against the interest of Ghanaian workers whose pension contributions fund the Trust’s investments.

The backlash forced the Trust to suspend the sale process, pending further stakeholder consultations and a parliamentary review.

Mr. Biney’s recent comments mark the first public update on the matter since the suspension and suggest a selective continuation of the investment strategy focused only on loss-making properties.

Deputy Finance Minister Assures Transparency

Responding to the committee’s deliberations, Deputy Minister of Finance, Thomas Ampem Nyarko, assured both Parliament and the public that any future transaction involving SSNIT’s hotels will be handled transparently and strictly in the interest of contributors and pensioners.

“He just stated that SSNIT intends to look for a strategic investor. We want to assure that any decision to involve a strategic investor will be carefully looked at and will be in the interest of SSNIT and the pensioners of this country,”
— Thomas Ampem Nyarko, Deputy Minister of Finance.

He further emphasized that no politically exposed persons would be allowed to benefit from any potential partnership agreements, reinforcing the Ministry’s commitment to integrity in the process.

Financial Performance: Labadi Leads the Pack

Among SSNIT’s hotel portfolio, Labadi Beach Hotel continues to perform strongly, with profits exceeding GH₵80 million in 2024. The property remains one of the most successful hospitality ventures in the country, known for its corporate clientele and international reputation.

By contrast, La Palm Royal Beach and Elmina Beach Resort have faced declining revenues due to maintenance challenges, lower occupancy rates, and post-pandemic recovery delays in the hospitality industry.

Busia Beach Resort, the smallest of the three, has struggled with low brand visibility and limited conference and events activity, prompting SSNIT’s renewed search for a strategic partner.

Analysts: Strategic Partnerships Could Work — If Done Right

Economic and hospitality analysts argue that SSNIT’s decision to seek private capital for the underperforming hotels could be positive if transparency, valuation accuracy, and clear governance structures are ensured.

Hospitality consultant Kwaku Frimpong told Modern Ghana that strategic investors can inject the needed operational expertise and capital to revamp the properties.

“Most of these hotels suffer from underinvestment and slow managerial decision-making. A private investor could bring agility, but SSNIT must ensure the deal structure protects pensioners’ long-term interests,”
— Mr. Frimpong noted.

Balancing Profitability with Public Accountability

The latest development reignites an important national debate about how state-linked enterprises like SSNIT should balance profit-driven investment with public accountability.

While the Trust’s mandate allows commercial investments to grow pension funds, critics insist that public assets — especially in tourism and hospitality — should not be sold without broad stakeholder consultation.

Observers expect Parliament’s Public Accounts Committee to continue scrutinizing SSNIT’s investment portfolio, particularly given the Trust’s broader exposure to real estate, equities, and infrastructure projects.

As SSNIT explores new partnerships for La Palm, Elmina, and Busia, the Trust faces a delicate task: attracting credible investors without eroding public confidence.

The outcome will not only determine the future of these hotels but could also set a precedent for how Ghana manages its state-owned assets in the private investment era.

Source: Accra Business News