NEW YORK – Pakistan is mulling over an option to demolish the PIA-owned Roosevelt Hotel in New York and built a skyscraper in its place.
The move is part of broader efforts by Islamabad to meet fiscal reform targets set under a $7 billion agreement with the International Monetary Fund (IMF), according to a report by Bloomberg.
Located in Midtown Manhattan, the Roosevelt Hotel has remained closed since 2020 after financial losses caused by the COVID-19 pandemic. It briefly reopened in 2023 to house migrants but has since remained non-operational.
Muhammad Ali, Prime Minister Shehbaz Sharif’s adviser on privatization, told the international media outlet that the government is considering a joint venture model.
Under this plan, Pakistan would offer the property as its stake, while a private partner would invest the capital. However, retaining the hotel remains an option if a sound financial case can be made.
“A decision will be made within the next few months once the market feedback and joint venture partner are finalized,” Ali said.
This initiative is part of Pakistan’s renewed push to reform or divest loss-making state-owned enterprises, a condition tied to its IMF bailout. The government’s privatization agenda is also focused on selling off Pakistan International Airlines (PIA), which could be the first entity to go on the market.
He said several of the country’s leading business conglomerates have expressed interest in acquiring PIA, and the government is hopeful of completing the sale by November. Turning around the national carrier would require investments estimated at around $500 million.
For the Roosevelt Hotel deal, Pakistan is in the process of hiring a new financial adviser. Seven firms—including global names like Citigroup Inc., CBRE Group Inc., and Savills PLC—have submitted bids, and a final selection is expected later this month.
Opened in 1924 and named after US President Theodore Roosevelt, the hotel is situated next to Grand Central Terminal and holds cultural and historic significance. It has recently been described as a “new Ellis Island” for its role in temporarily housing migrants during a recent crisis.
