New York's iconic Roosevelt Hotel may be demolished if not considered financially viable
The Pakistani government is once again revisiting the future
of the historic Roosevelt Hotel in New York City, a property owned by Pakistan
International Airlines (PIA). Once a beacon of luxury in Midtown Manhattan, the
iconic hotel may now face demolition to make way for a high-rise skyscraper.
Closed since 2020 due to financial losses during the
COVID-19 pandemic, the Roosevelt briefly reopened in 2023 to provide shelter
for asylum seekers under a lease with New York City. That agreement ended in
2024, and with the hotel’s future still uncertain, officials are now
considering bold redevelopment options, including razing the structure
entirely.
Read More US
terminates $220 million agreement for PIA’s Roosevelt Hotel
Muhammad Ali, Adviser to the Prime Minister on
Privatization, said the government is weighing a joint venture model, where
Pakistan would contribute the land and a private developer would bring in the
investment. Keeping the hotel intact is also on the table—provided it proves
financially viable.
A final decision is expected in the coming months, following
the selection of a joint venture partner and a review of prevailing market
conditions. Ali also noted that the privatization of PIA could be completed by
November 2025, with several of Pakistan’s leading business groups reportedly
interested in acquiring and revitalizing the struggling airline. He estimated
that around $500 million in investment would be needed for a turnaround.
The Roosevelt Hotel’s redevelopment is central to Pakistan’s
wider privatization strategy, which aims to generate Rs86 billion in the
2025–26 fiscal year. This includes the planned divestment of PIA and three
major power distribution companies.
Read More ECC
approves financial support for PIA’s Roosevelt Hotel in New York
To facilitate the hotel’s sale or redevelopment, the
government is in the process of appointing financial advisers. Seven major firms,
including Citigroup, CBRE Group, and Savills, have submitted bids. The final
selection is expected later this month.
Once dubbed “the new Ellis Island” for its role in housing
migrants, the Roosevelt may soon be transformed into a multimillion-dollar real
estate venture. A valuation by U.S.-based firm Jones Lang LaSalle earlier this
year revealed that while a direct sale in its current state would yield modest
returns, a redevelopment project could potentially multiply its value four to
five times.
The Roosevelt Hotel, a storied symbol of Pakistan’s overseas
assets, may soon give way to a gleaming new skyscraper—marking a dramatic new
chapter in its century-old legacy.
Source: Daily Pakistan