February 2017 Message from the CEO
2017 is well underway. The inland regions of South Africa had tremendous rains and most dams are filled to the brim. Maize fields have not looked this amazing in a long time. The Rand dollar exchange rate has improved dramatically and this will manifest in lower inflation and also make imported goods like TV’s and also commodities like maize meal cheaper. Western Cape is still suffering a severe drought but this crisis will also come to an end. In short: South Africa and its people have a lot of positives to look forward to despite the obvious shortcomings and challenges.
Equally so Orion has tremendous potential and a very bright future. Let’s look at the facts:
1) Orion Real Estate has been listed on the Johannesburg Stock market for over 10 years. It successfully converted to a Real Estate Investment Trust (REIT) in 2015
2) The first Orion property was acquired in 1991. The group is now 26 years old.
3) Orion Hotels was founded in 1999 with the acquisition of The Devonshire Hotel. The hotel division is therefore now 18 years old.
4) The Orion Group employs around 1000 staff
5) Total assets of the Orion Group exceeds R1 200 000 000 (R1,2 billion)
6) Total Debt is less than R400 million
7) Net equity is around R800 million.
8) Most of our commercial properties and hotels are very attractive buildings in good locations.
9) Replacement values of our properties are far in excess of the R1,2 billion mentioned above.
10) Orion has attained TOP EMPLOYER status 5 years running. Only 76 companies recently attained this status.
11) Orion has world class HR & IR practices. This also means we hold people accountable for the job they signed up to do.
12) Our staff have a reputation of being resilient with a “can do” attitude.
13) Operational efficiencies are improved every month.
14) Many of our management staff have been with the company 5 years or more.
15) Our relationships with various workers unions are mostly cordial.
16) We have a number of Orion staff who have previously left and returned to the Company
17) We get regular requests/applications from ex employees who wish to return to Orion.
Judging by the letting enquiries being dealt with and the activities around the hotel on-line channels and central reservations the remainder of the year will see an improvement in business.
A number of exciting refurbishment and improvement projects are underway. This means that by this time next year Orion will be in better shape and condition than this year.
We actually live the slogan
“Our Business is getting better every day in every way”