Kochi:Lulu Convention and Exhibition Centre Pvt Ltd (LCEC), the flagship hospitality venture of Lulu Group in India, is steadily progressing on the path to financial recovery, with net losses narrowing for the second consecutive year.
The company reported a loss of Rs138.21 crore in FY25, a significant improvement from Rs151.03 crore in FY24 and Rs172.30 crore in FY23—indicating a sustained shift towards operational breakeven.
This improving trend is underpinned by consistent revenue growth, improved cost management, and a strategic focus on enhancing the performance of both its hotel and convention segments.
Debt restructuring
In a major development during FY25, Lulu Convention Centre – LCEC, closed its external commercial borrowings (ECB) in April 2025, eliminating associated foreign exchange risks and reducing overall debt pressure. This was facilitated by a Rs500 crore equity infusion from promoters Yusuff Ali and Ashraf Ali, reflecting the Lulu Group’s strong financial commitment and long-term vision for the project.
With the closure of ECB, Lulu Convention Centre has taken a crucial step towards financial stability, while creating room for better debt servicing and improved credit profile going forward.
Growth across key metrics
Total operating income grew to Rs236.67 crore in FY25, up from Rs209.90 crore in FY24 and Rs204.48 crore in FY23. Revenue from the convention centre rose by 14 per cent year-on-year, reaching Rs87.76 crore, while room rental income grew 9.6 per cent, supported by an 11.5 per cent increase in the average room rate (ARR) to Rs14,099. Occupancy remained stable at 62.67 per cent.
Hyatt partnership
LCEC operates under the “Grand Hyatt” brand through a long-term management agreement with Hyatt International. This association brings global standards of hospitality, operational excellence, and strong international visibility.
The Grand Hyatt Bolgatty—with 264 rooms, 4 luxury villas, 2 houseboats, and an 11,090 pax convention capacity—remains one of India’s largest and most iconic hospitality and convention assets.
Promoter support
The Lulu Group, led by Managing Director Yusuff Ali, has consistently supported LCEC through both equity infusions and unsecured loans, which stood at Rs366.89 crore as of March 31, 2025. Of this, Rs72.40 crore is subordinated to bank debt, further reinforcing financial flexibility and lender comfort.
The group’s long-standing presence in the global retail and hospitality space, particularly across GCC countries, India, and Southeast Asia, lends credibility, market access, and operational strength to LCEC’s future.
Outlook stable
CARE Ratings has maintained a Stable outlook for LCEC, citing the company’s strong promoter backing, growing revenues, and the recent closure of ECBs as key positives. With debt obligations better aligned with projected cash flows from FY26 and both occupancy and ARR improving, LCEC is positioned to move steadily toward sustainable profitability.
