Lahore: The federal government has leased out its precious asset in the United States — the Roosevelt Hotel, a property of the Pakistan International Airlines (PIA) — to the New York City (NYC) administration for three years against $220 million.
The news was shared by Federal Minister for Railways and Aviation Khawaja Saad Rafique, who announced the news while addressing a press conference in Lahore on Sunday.
“An agreement has been reached with the New York City Administration, whereby the government of Pakistan will receive $220 million,” Saad Rafique said, adding: “Under this agreement, 1,250 rooms of the hotel have been leased for a period of three years”.
He noted that the Roosevelt Hotel, which was closed in 2020 due to the COVID-19 pandemic, had become a major concern for the government. “There was a severe risk that if the hotel is not utilised, it will be affected by landmarking,” he added.
US downgrades status of historic Pakistani embassy-owned building in District Columbia
“The landmarking would have affected the price of the Pakistan-owned hotel,” Rafique claimed. He expressed regret that the previous government had made the decision to run the Roosevelt Hotel through a public-private partnership.
This lease agreement is expected to generate billions of rupees in revenue for the country.
He noted that the “major issue” the government was facing was the salaries of the hotel’s employees. “Now, as a result of the agreement, 77 employees will serve there and the rest will be terminated,” he said, adding that it was decided that no employee from the Civil Aviation Authority (CAA) will be employed at the hotel.
The Roosevelt Hotel, established in 1924, is among the historic hotels in the United States and is situated in the luxurious downtown area of Manhattan.
