The Halcyon Castle owes its existence to Her Royal Highness the Maharani Sethu Lakshmi Bayi and was designed and constructed by her consort M.R.Rv Sri Rama Varma Valiya Koil Thampauran. The palace, which was built in 1932, is a splendid example of splendour, luxury and magnificence.
It is situated in Travancore that was at one time a princely state. The main idea of the castle was to act as a beach resort for the entire royal family. In 1964, the Halcyon Castle exchanged hands and was sold by the royal family to the Government of Kerala.
The castle now enjoys the distinction of being the only deluxe and luxury hotel of its kind in the entire area. The place is also now referred to as the Kovalam Palace and is within the premises of the international beach resort of Kovalam.