Rock City Hotel has withdrawn its bid to purchase 60% stakes in some hotels belonging to the Social Security and National Insurance Trust (SSNIT).
The decision follows mounting protests, media discussions surrounding the investment strategy of SSNIT and threats by organized labour to embark on an indefinite strike if the sale goes through.
The hotels in question are Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, and Ridge Royal Hotel.
A formal letter addressed to the Director-General of SSNIT, Mr. Kofi Osafo-Maafo by Rock City Hotel expressed dismay at the negative commentary and perceptions that have emerged since the announcement of their initial success in the bid.
The hotel noted that despite their efforts in the international competitive bid, the subsequent media engagements and stakeholder concerns have cast a shadow over the initiative.
It indicated that the negativity surrounding the strategic investment decision has not only impacted their brand’s image but also threatened the potential success of the investment itself.
The letter states, “Following from all the commentary monitored and the undue negativity that has attended this commentary, we feel you have not done enough to engage all your stakeholders, leading to perceptions that you don’t want to be associated with our brand. We believe that such negativity is not only injurious to our brand but also jeopardises the success of the investment we intend to make in these hotels.”
“As a result, the hotel has chosen to withdraw its bid and cease its pursuit of this investment opportunity.”
“Therefore, we are writing to inform you of our decision to withdraw our bid and discontinue our pursuit of this investment opportunity.”
The letter also emphasized Rock City Hotel’s commitment to accountability and transparency, offering SSNIT the option to release or publish any bid documents as deemed necessary.
According to SSNIT, the decision to divest a 60% stake each in these hotels is aimed at raising capital to invest and manage its other hotel investments for efficiency, profitability and long-term sustainability of the SSNIT Pension Scheme.
In a related development, the Board and Management of SSNIT has announced that the process to divest 60% of SSNIT’s stake in the hotels has been terminated.
It assured pensioners, contributors and the public of the Board’s commitment to managing the affairs of the Trust prudently for the sustainability of the Pension Scheme.
Find the letters below: