Labadi Beach Hotel not struggling — Ablakwa reveals impressive financial performance

  Thu, 30 May 2024
Headlines Labadi Beach Hotel not struggling —  Ablakwa reveals impressive financial performance

Samuel Okudzeto Ablakwa, Member of Parliament for North Tongu, has revealed that the Labadi Beach Hotel is far more profitable than previously suggested by the Social Security and National Insurance Trust (SSNIT).

Contrary to SSNIT's claims that the hotel is struggling, Mr. Ablakwa asserts that the financial statements, audited by Deloitte, demonstrate the hotel's robust financial health.

According to Mr. Ablakwa, the annual financial statements of Labadi Beach Hotel (Hotel Investments Ghana Limited) for the past decade, including 2023, indicate strong profitability.

The hotel reportedly holds cash reserves of GHS54,855,795 across five bank accounts.

The 2022 Deloitte financial statement shows a turnover of GHS120,438,655, which impressively increased to GHS188,076,649 in the 2023 management account.

Additionally, the hotel's gross profit surged from GHS70,734,099 in 2022 to GHS158,490,448 in 2023. Over the past five years, Labadi Beach Hotel has also contributed significantly to the government's revenue, paying GHS20,318,232 in taxes.

Mr. Ablakwa argues that these figures clearly indicate that Labadi Beach Hotel is a valuable asset and not the struggling entity portrayed by government representatives.

He believes that the hotel's profitability could potentially revitalize SSNIT’s entire hotel portfolio if managed effectively.

He suggested that the current all-Ghanaian management team of Labadi Beach Hotel should be considered for managing all of SSNIT’s hotels.

Furthermore, Mr. Ablakwa expressed strong opposition to the sale of six SSNIT hotels to Agriculture Minister Bryan Acheampong, arguing that it is not in the collective interest of Ghanaians.

In response, he is organizing a demonstration against the sale, scheduled for June 18.