Pakistan, US sign strategic agreement to redevelop PIA’s Roosevelt Hotel
Pakistan and the United States have officially
launched a strategic economic partnership aimed at redeveloping the iconic Roosevelt Hotel in New York, the
Finance Division confirmed on Thursday.
The initiative includes collaboration with the US General Services Administration (GSA) on the
operation, maintenance, renovation, and redevelopment of the hotel. The two
nations have signed a memorandum of understanding (MoU) to formalize their
cooperation in this endeavor.
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terminates $220 million agreement for PIA’s Roosevelt Hotel
The MoU was signed by GSA Administrator Edward
C. Forst on behalf of the US, and Federal Minister for Finance and Revenue,
Sen. Muhammad Aurangzeb, on behalf of Pakistan. The agreement was witnessed by
Prime Minister Shehbaz Sharif and US Special Envoy Steve Witkoff.
This agreement establishes a clear, time-bound
framework to assess the technical, commercial, and economic aspects of the
redevelopment, ensuring transparency and structured decision-making to achieve
tangible results.
Given the Roosevelt Hotel's prime location in
Manhattan and the complexities of New York’s zoning and approval processes,
both governments will work closely to reduce execution risks, clarify
regulatory requirements, and safeguard the transaction’s value.
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approves financial support for PIA’s Roosevelt Hotel in New York
The hotel was initially acquired by Pakistan
International Airlines (PIA) in 2000, in partnership with Saudi Prince Faisal
bin Khalid Al Saud. PIA later bought out the prince’s stake, securing full
ownership of the property, which remains one of its most valuable assets
abroad.
The
hotel has been leased at various times, most recently to New York City, which
used it as a migrant shelter. However, in February 2025, the city terminated
its $220 million lease agreement, marking a significant financial setback for
the airline.
Source: themedialine