Ablakwa exposes govt’s misleading claims on Labadi Beach Hotel’s financial health

Member of Parliament for North Tongue, Samuel Okudzeto Ablakwa, has publicly challenged the government’s assertion that Labadi Beach Hotel is financially struggling and in need of a strategic investor.

In a revealing post on social media platform X, Ablakwa presented compelling evidence contradicting the government’s narrative.

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 disclosed that he had obtained the annual financial statements of Labadi Beach Hotel (Hotel Investments Ghana Limited) for the past decade, prepared by Deloitte, as well as the 2023 management account.

These documents paint a picture of robust financial health and profitability, contrary to government claims.

“Incredibly, this is one of 6 hotels the government says is struggling and desperately needs a strategic investor to inject capital and efficiency,” Ablakwa wrote.

“Contrary to the deceptive government/SSNIT narrative, the financials show that Labadi Beach Hotel is far more profitable than previously thought.”

The financial statements reveal that Labadi Beach Hotel holds GH¢54,855,795 in cash reserves across five bank accounts. The hotel’s turnover increased from GH¢120,438,655 in 2022 to GH¢188,076,649 in 2023, a significant improvement. Gross profit also saw a remarkable rise from GH¢70,734,099 in 2022 to GH¢158,490,448 in 2023.

Additionally, Labadi Beach Hotel has contributed GH¢20,318,232 in taxes to the government over the past five years, underscoring its substantial economic impact.

“Clearly, Labadi Beach Hotel is a cash cow and not a struggling hotel as government propagandists are claiming,” Ablakwa asserted.

He argued that the hotel’s profitability could be used to revamp other hotels within SSNIT’s investment portfolio. “Probably the all-Ghanaian management of the Hotel should be asked to manage all of SSNIT’s hotels,” he suggested.

Ablakwa expressed strong opposition to the proposed investment deal, stating, “I am more convinced that this deal is not in our collective interest.” He called for public support against the deal and announced a demonstration scheduled for June 18, declaring, “Hands off our SSNIT hotels or get ready for our June 18 DEMO!”

As the debate intensifies, Ablakwa’s revelations add a new dimension to the discussion on the future of state-owned hotels and their management.

Source: Mypublisher24