Global real estate firm quits as financial adviser for Roosevelt Hotel privatisation

Global real estate firm Jones Lang LaSalle (JLL) has withdrawn from its role as financial adviser for the privatization of Pakistan’s Roosevelt Hotel in New York, citing a conflict of interest arising from client interest in the property, the government announced on Thursday.

Pakistan is looking to sell a minority stake in the historic Manhattan hotel and find a redevelopment partner as part of its broader plan to offload loss-making state-owned assets under a $7 billion agreement with the International Monetary Fund (IMF). Closed in 2020, the Roosevelt Hotel—considered one of Pakistan’s most valuable foreign assets—has since operated intermittently, most recently as a migrant shelter.

JLL was appointed in January 2023 to advise on the potential sale. In a statement, the Privatization Commission of Pakistan said the firm had completed due diligence and submitted reports outlining various transaction structures aligned with global best practices.

However, following the cancellation of the hotel's lease agreement with New York City, JLL reported “heightened interest” in the property from several of its clients, which led to a potential conflict of interest. The firm chose to resign to avoid any “perceived or actual” conflict, according to the ministry.

In response, the Privatization Commission has begun the process of appointing a new financial adviser on a fast-track basis, aiming to ensure that the hotel’s privatization proceeds in a transparent and competitive manner.

“The Government of Pakistan and the Privatization Commission remain fully committed to concluding the Roosevelt Hotel’s privatization swiftly, in compliance with all legal requirements,” the statement said.

Acquired by Pakistan International Airlines Investment Limited (PIAIL) in 1979, the Roosevelt Hotel occupies an entire city block on Madison Avenue and 45th Street. Despite numerous attempts by successive Pakistani governments over the past two decades to sell, lease, or redevelop the property, none have progressed beyond the planning stage.