Rock City withdraws bid for SSNIT Hotels amid controversy
Rock City Hotels has withdrawn its bid for four hotels owned by the Social Security and National Insurance Trust (SSNIT), ending the controversy surrounding the deal.
In its withdrawal notice to SSNIT, Rock City Hotels stated, “At all material times, we believed that we had participated in an internationally competitive bid and were happy to have learned of our success, having edged out the 15 other organizations that participated in the process.”
The company expressed surprise at the concerns raised by some stakeholders regarding SSNIT’s decision to seek strategic partners for the hotels. “It therefore came as a total surprise to us that some of your stakeholders have raised concerns about your decision to seek strategic partners for these hotels. We have also taken note of ongoing media discussions on your decision to seek strategic investors for these hotels,” the notice continued.
Rock City Hotels noted the ongoing media coverage and SSNIT’s recent public engagements defending the decision to seek a strategic investor. “Following 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 we don’t want associated with our brand. We believe that such negativity is not only injurious to our brand but also jeopardizes the success of the investment we intend to make in these hotels.”
Citing these concerns, Rock City Hotels announced its decision to withdraw from the bid and cease its pursuit of the investment opportunity.
“Therefore, we are writing to inform you of our decision to withdraw our bid and discontinue our pursuit of this investment opportunity.”
In a commitment to transparency, the company also consented to the release of its bid documents for public scrutiny if necessary.
“Finally, in the interest of accountability and transparency, we consent to you releasing all or whatever parts of our bid documents for public scrutiny or publishing the same if it should become necessary.”
Earlier today, Organized Labour had directed workers to strike if the deal was not discontinued.
