Results for: Q1 Performance

The Indian hospitality sector has demonstrated robust performance in the first quarter of 2024 (January-March), exhibiting a Year-on-Year (Y-o-Y) growth primarily attributed to an 8.5% increase in Average Daily Rate (ADR) compared to Q1 2023. This surge in ADR has resulted in a significant 11.4% growth in Revenue per Available Room (RevPAR).

The report by JLL further highlights the expansion of branded hotel openings, with 36 new hotels and 2,316 keys added to the inventory. Notably, 75% of these new keys were located in Tier II and III cities, indicating the growing demand for hospitality services beyond metropolitan areas.

Major factors contributing to this growth include an increase in corporate travel, weddings, and Meetings, Incentives, Conferences, and Exhibitions (MICE) demand. The sector also witnessed a healthy 5.5% Quarter-on-Quarter (Q-O-Q) growth in RevPAR in Q1 2024 compared to Q4 2023. This can be attributed to higher levels of corporate travel in Q1 2024 as opposed to Q4 2023, which typically experiences a seasonal decline.

The positive momentum from the first quarter is expected to continue into the second quarter, with business travel, MICE, and weddings driving the busy season. Additionally, the following quarter will also see a surge in leisure travel, particularly during the summer holidays.

Air Arabia, the leading low-cost carrier in the Middle East and North Africa, has announced strong financial and operational results for the first quarter of 2024. Despite industry-wide challenges, including rising fuel prices and supply chain disruptions, the airline reported a net profit of AED 266 million, an increase of 8% in revenue. Air Arabia’s robust passenger demand and efficient operations contributed to its solid financial performance.

Upslope’s defensive strategy delivered attractive returns in Q1, outperforming long-only indices while maintaining strong protection against potential macro risks. The fund’s portfolio positioning reflects perceived opportunities on both the long and short sides, with a focus on undervalued consumer staples companies like Barry Callebaut and Hershey Foods, which are expected to benefit from the current cocoa crisis.