The Inconvenient Truth

Why gov’t should consider a strategic Labadi–led turnaround of SSNIT’s hospitality assets

By Professor Douglas K. BOATENG

Ghana stands at a delicate but decisive moment in its hospitality and tourism evolution. Behind the fiscal pressures facing state-owned assets and the broader national reset agenda lies a strategic opening that could reshape the sector for decades. The potential sale of La Palm Royal Beach Hotel, and possibly other SSNIT-owned hotels, to the high-performing Labadi Beach Hotel is not simply a commercial option.

It is a national value-restoration opportunity that calls for courage, pragmatism, and disciplined governance. If this opportunity is treated with short-term considerations or indecision, Ghana risks watching another valuable national asset deteriorate beyond recovery. But if handled with professionalism and long-term thinking, it could become one of the most impactful hospitality restructurings in West Africa.

Labadi has already demonstrated the capabilities Ghana needs now

One fact must be acknowledged with clarity. Under the steady and disciplined executive leadership of Mr David Eduaful and his capable majority-Ghanaian management team, Labadi Beach Hotel has become a continental benchmark for performance excellence. Their transformation of Labadi did not come from chance, political favour, or external consultants.

It came from competence, board supervisory leadership, governance discipline, and operational excellence. During my tenure as Chairman, Labadi was run as a true corporate entity. The board focused on oversight, not interference. The executive team focused on delivery, not bureaucracy. This separation of roles built a performance culture grounded in responsibility, high and global standards, accountability and results. That culture delivered:

• sustained year on year profitability and dividends
• strong balance sheet and cash flow fundamentals
• high global guest satisfaction ratings
• multiple international awards
• world-class operational discipline

This is the exact combination of governance and performance required to rescue and revive La Palm and the other SSNIT hospitality assets. It is evident that Ghanaian leadership, when empowered with the right governance frameworks, can outperform global competitors. The ability to grow a successful hotel in a challenging environment is proof of the ability to revitalise one that has lost its way.

SSNIT’s current hospitality challenges require a capable turnaround partner

The Social Security and National Insurance Trust, SSNIT, has invested substantially in several hotel properties over the years. The intention was sound: to generate long-term income streams to support pension obligations. But those assets have struggled under a combination of ageing infrastructure, rising maintenance costs, market competition, and inconsistent governance continuity.

This is not a matter of blame. It is a matter of structural reality. SSNIT’s principal mandate is pension stewardship, not hospitality turnaround management. When a pension institution is compelled to manage distressed hotels, operational misalignment becomes unavoidable. The outcome is predictable: value erosion accelerates.

But a declining asset is not a doomed asset. Decline simply signals the urgency for new management energy, fresh capital, and a performance model proven to deliver under similar economic conditions. La Palm is one of the hospitality assets that can be rescued, but only if entrusted to a leadership team with a consistent track record of renewal and value creation. Labadi is currently the only Ghanaian hospitality entity that has demonstrated that capability at scale.

Labadi’s  management under a strong and experienced supervisory board can turn around La Palm and SSNIT’s hospitality portfolio within six years. With strong supervisory guidance and disciplined board oversight, the Labadi management team can restore La Palm, and by extension, SSNIT’s other hotels, to sustainable profitability within six years. This statement is grounded in evidence, not optimism.

Labadi’s management has already proven that:

• disciplined governance improves profitability even under economic pressure
• effective cost control preserves value without compromising quality
• strategic reinvestment increases long-term competitiveness
• strong operational culture outperforms external macroeconomic challenges
• well-led Ghanaian teams can deliver global-standard hospitality

These are precisely the capabilities required for a turnaround. What La Palm needs is not another ownership reshuffle or a temporary facelift. It needs a leadership and management team that has demonstrated the ability to revitalise an institution through consistency, discipline, and strategic oversight. A distressed property does not remain distressed when placed under the stewardship of a leadership team that has already mastered the science of renewal.

Why SSNIT should consider selling La Palm and its other hotels to Labadi

If the objective is to protect pension funds, restore asset value, and strengthen national competitiveness, then the most strategic option is to entrust the assets to a Ghanaian entity that has proven its capability.

A Labadi-led strategic acquisition or integration could generate:

• a revitalised hospitality cluster with strong cost and revenue synergies
• a unified performance culture across multiple properties
• a reinvestment model that ensures long-term asset renewal
• stronger returns for SSNIT over the medium to long term
• significant job preservation and expansion
• a globally competitive tourism ecosystem on Ghana’s coast

The economic logic is clear. Entrusting distressed assets to entities that have struggled to deliver value in the past will only replicate the same outcome. Entrusting them to a team that has repeatedly delivered results creates a new future. A capable supervisory board and management team that has built consistent success is naturally positioned to restore assets that have lost their performance trajectory.

A national reset opportunity rooted in governance and long-term thinking

Ghana’s Reset Agenda is anchored on strengthening institutions, restoring public value, and building resilient national assets. A strategic Labadi-led acquisition and integration aligns with this commitment. A nationally responsible approach would include:

• commissioning an independent valuation
• ensuring a transparent competitive process
• structuring a phased acquisition that protects Labadi’s balance sheet
• guaranteeing operational independence from political cycles
• embedding world-class governance standards
• aligning the transaction with Ghana’s long-term tourism and economic strategy

Nations that preserve value are nations that act decisively when strategic openings emerge.

Personal reflection – La Palm once represented Ghana’s excellence

I recall staying at La Palm in the early 2000s while on a visit to Ghana with Cyril Ramaphosa, now President of South Africa. At that time, La Palm was one of the most beautiful and admired hotels in West Africa. It showcased Ghana’s capability, ambition, and tourism potential. Its present state does not erase its history.

Instead, it confirms the need for renewal. Assets that once flourished can flourish again if placed under stewardship that understands both the discipline of operations and the responsibility of legacy. A property that once inspired admiration does not lose its potential because its environment changed. Its potential only waits for a leadership team that can reactivate it.

Conclusion – A decision future generations will judge

Ghana is being presented with a strategic opportunity to turn distressed hospitality assets into national symbols of excellence. The inconvenient truth is straightforward: If Labadi cannot restore La Palm and the other SSNIT-owned hotels, it is unlikely that any other local institution can achieve it within the same time horizon. Labadi has:

• the governance culture
• the management discipline
• the technical competence
• the financial stability
• the proven track record

Under disciplined supervisory guidance, Labadi’s executive team can turn around SSNIT’s hospitality assets within 6 years. This is the most credible pathway to protecting pension funds, boosting tourism competitiveness, and strengthening national economic resilience. History will judge whether this administration chose to preserve value or allowed hesitation to diminish it. Ghana must place La Palm and SSNIT’s sister assets in Labadi’s capable hands, which have already proven what disciplined leadership can deliver.

 

>>>the writer is a Chartered Director (UK), Generationalist, Chartered Engineer (UK), Strategist, Governance and Industrialisation Advocate; and a Former non-executive Chairman, Labadi Beach Hotel

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