Pakistan Considers Options for PIA-Owned Roosevelt Hotel in New York City

Pakistan is currently exploring various options for its PIA-owned Roosevelt Hotel in New York City, including the potential demolition of the iconic landmark to make way for a new skyscraper. This decision is part of the country’s efforts to fulfill its commitments to the International Monetary Fund (IMF), as reported by Bloomberg.

Located in midtown Manhattan, the Roosevelt Hotel has 1,025 rooms and was forced to shut down in 2020 due to significant revenue losses caused by the COVID-19 pandemic. It briefly served as temporary housing for migrants in 2023 before closing again.

According to Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, the government is considering a joint venture where Pakistan would provide the land and a partner would bring in equity. Alternatively, they may choose to keep the hotel if it is deemed economically feasible. Ali stated that a decision will be made in the coming months after a joint venture partner is finalized and market research is conducted.

This move is part of the broader effort by Prime Minister Shehbaz Sharif’s government to restructure or sell off state-owned assets, a commitment made to the IMF as part of a $7 billion loan agreement, according to Bloomberg. The first asset to be privatized could be Pakistan International Airlines (PIA), with Ali expressing hope that the sale will be completed by November.

Ali also mentioned that several large business groups in Pakistan have shown interest in purchasing PIA and have the capability to run the airline. He estimated that an investment of approximately half a billion dollars would be required to bring the airline back to profitability.

Currently, Pakistan is in the process of appointing advisers for the hotel transaction, with bids from seven groups, including Citigroup Inc., CBRE Group Inc., and Savills PLC. The government is expected to finalize a new adviser later this month.

In conclusion, Pakistan is evaluating various options for its PIA-owned Roosevelt Hotel in New York City, including the possibility of demolition and construction of a new skyscraper. This decision is part of the country’s efforts to meet its commitments to the IMF, and the sale of other state-owned assets, such as PIA, is also being pursued.