Pakistan's Advisor on Privatization, Muhammad Ali, said on Monday that no final decision has been made regarding the potential demolition of the Roosevelt Hotel in New York, a historic property owned by Pakistan International Airlines (PIA). He clarified that other options for the site are still under consideration.
The century-old Roosevelt Hotel, located in Manhattan, is one of Pakistan's most valuable foreign assets. Owned through PIA’s investment arm, Pakistan International Airlines Investment Limited (PIAIL), the property has long been at the center of discussions on privatization and redevelopment. Rather than pursuing a direct sale, Islamabad is aiming to form a joint venture with a redevelopment partner to maximize the hotel’s long-term value.
The Pakistani government expects the privatization process to conclude by the end of this year. The 1,015-room hotel, located near Grand Central Terminal, Times Square, and Fifth Avenue, was shut down in 2020 due to financial losses but has been intermittently used since then, most recently as a temporary shelter for migrants.
According to a recent Bloomberg report, the government is exploring the possibility of demolishing the building to construct a skyscraper. Under the proposed joint venture, Pakistan would offer the land while the partner would provide the investment. However, keeping the hotel operational remains an option if it proves financially viable.
“The demolition is not yet confirmed,” Ali told Arab News, responding to reports about the landmark building being torn down. “We are also considering continuing hotel operations and expect to finalize a decision in the next couple of months once we appoint our new financial adviser.”
Last month, global real estate firm Jones Lang LaSalle (JLL) stepped down as financial adviser for the hotel project, citing a conflict of interest due to existing client relationships. The government has since moved quickly to identify a replacement and proceed with the federal cabinet-approved joint venture model.
Seven consortia have submitted bids to serve as the new financial adviser, including:
- Greysteel, B6 Real Estate Advisers, and Kirkland & Ellis LLP
- CBRE, Morgan Stanley, Paul Hastings, and Goldman Harris LLC
- Ankura, Bank of Punjab, Baker McKenzie, and Orr, Dignam & Co.
- Savills, MACRO, Cirtin Cooperman & Company LLP, Hogan Lovells, and Mohsin Tayebaly & Co.
- Alvarez & Marsal Private Equity Performance Improvement Group LLC, Proskauer, and FGE Ebrahim Hosain (FGE-EH)
- Citi Bank, Cushman & Wakefield, Proskauer Rose LLC, and HaiderMota & Co.
- Newmark, Herbert Smith Freehills Kramer (US) LLP, and Peregrinvest LLC
- Ali said a new adviser would be appointed within the next three weeks.
“We might continue with the hotel,” he added. “It will depend on the feasibility study and final recommendations from our new financial adviser.”
The Roosevelt Hotel, located at the corner of Madison Avenue and 45th Street, was acquired by PIAIL in 1979. Over the past two decades, various Pakistani governments have considered selling, leasing, or redeveloping the property, though none of those proposals moved past initial stages.
Prime Minister Shehbaz Sharif’s administration is now making the most serious push in years to restructure or offload state-owned enterprises, including the Roosevelt Hotel, in line with commitments to the International Monetary Fund (IMF). Pakistan is currently undergoing a review by the IMF as part of its $7 billion loan program, and a successful review could unlock a $1 billion disbursement.
In July, the Cabinet Committee on Privatization (CCOP) approved a joint venture structure for the Roosevelt project, offering flexibility, multiple exit options, and minimal fiscal risk to the government.
“This option is aimed at maximizing long-term value for the country while ensuring flexibility and minimizing future fiscal exposure,” the Privatization Commission said.
A PIAIL official familiar with the process told Arab News that technical evaluation of the bids is underway. Once a financial adviser is selected, they will conduct a feasibility study that will inform the final decision, which must be approved by the federal cabinet.
The Roosevelt Hotel suspended operations in 2020 amid severe financial losses brought on by the COVID-19 pandemic. In 2023, the Pakistani government leased the property to the City of New York as a temporary migrant shelter, generating more than $220 million in projected rental income. That agreement concluded in 2024, and no replacement revenue stream has yet been announced.
In June, Ali emphasized that the ultimate valuation of the property would depend on the transaction structure adopted.
“Depending on the structure, the level of risk, and the government's involvement, this asset has the potential to bring in substantial revenue,” he said.