DUBAI: Lulu Convention and Exhibition Center Pvt Ltd (LCECPL), which owns the Grand Hyatt and the adjoining international convention centre on Bolgatty Island in Kochi, continues to stay in the red despite steady revenue growth and promoter support.
The company, part of the Abu Dhabi–headquartered Lulu Group, has been in operation for five years but is yet to break even.
In FY25, the company reported an operating income of Rs236.7 crore, up from Rs209.9 crore in FY24, while net losses narrowed to Rs128.7 crore from Rs151 crore a year earlier. Despite this improvement, accumulated losses and high leverage continue to weigh on its financials.
LCECPL’s total loans, including term borrowings, stand at about Rs520crore (AED215.5 million). Even after a Rs500 crore equity infusion by promoters to partly repay external debt, leverage remains high, with external debt to EBITDA estimated at 6–6.5 times over FY26–FY27.
The company operates the five-star Grand Hyatt Kochi Bolgatty, which includes 264 rooms, 38 suites, four villas and an international convention centre that can seat over 11,000 guests.
The property enjoys a strong brand association and favourable location, reflected in occupancy levels of 63–68 per cent and average room rents between Rs11,500 andRs14,000 in the past three years.
Industry observers say these metrics would normally point to operational stability, yet the heavy debt burden and single-asset nature of the business have kept the venture from achieving profitability.
The credit rating report notes that the company’s liquidity is “adequate,” backed by Rs28.6 crore in cash reserves and a debt service reserve of Rs13.6 crore. LCECPL has no major capex plans in the near term, which could allow cash flow improvement and gradual reduction in debt.
While ICRA has assigned a Stable outlook, the break-even timeline remains uncertain. With rising revenue and moderate debt obligations (Rs2 crore and Rs13 crore due in FY26 and FY27), a turnaround could be possible if operating margins sustain around 35 per cenrt and occupancy remains robust.
However, the case of LCECPL underlines a broader trend — Lulu’s India ventures, despite their scale and brand strength, have yet to deliver sustained profits. The Kochi convention centre, like other Lulu hospitality and retail projects in the country, reflects the long gestation and high-capital nature of such ventures.
