Future of the Roosevelt Hotel: Skyscraper or Restoration?
The iconic Roosevelt Hotel in Midtown Manhattan, once owned by Pakistan International Airlines (PIA), faces an uncertain future as Pakistan explores options to meet its International Monetary Fund (IMF) commitments. The possibilities include demolishing the historic landmark to construct a skyscraper or preserving the hotel if it proves economically viable.
Exploring Development Options
Muhammad Ali, advisor to the prime minister on privatisation, revealed that the government is considering a joint venture (JV) for the Roosevelt Hotel property. Under this arrangement, Pakistan would contribute the land, while the partner would provide the equity. The ultimate decision hinges on economic considerations.
"We will have clarity on this in the next few months after finalisation of the JV partner and market sounding," - Muhammad Ali, advisor to the prime minister on privatisation.
Another option under evaluation is the complete demolition of the existing hotel to make way for a brand new skyscraper.
Pakistan's Commitment to the IMF
The Roosevelt Hotel decision is part of a broader effort by Prime Minister Shehbaz Sharif’s government to restructure or sell state-owned companies, as mandated by a US$7 billion loan agreement with the IMF. The government is eager to fulfill all its commitments.
PIA's Potential Sale
The first asset likely to be sold is PIA, the struggling national carrier. The government can no longer sustain the airline through periodic bailouts. Ali expressed optimism that PIA could be sold by November 2025. Several large business groups in Pakistan have expressed interest in acquiring PIA and are deemed capable of managing the airline, but an investment of approximately half a billion dollars will be required to turn it around.
The Hotel's Historic Significance
Pakistan is currently in the process of selecting advisors for the Roosevelt Hotel transaction. The hotel has been described as "the new Ellis Island" because of its historical role as a migrant intake point. Seven groups, including Citigroup, CBRE Group, and Savills, submitted bids to advise on the hotel's future.
| Asset | Status | Details |
|---|---|---|
| Roosevelt Hotel | Under Consideration | Options include demolition for a skyscraper or restoration. A decision is expected in the coming months. |
| Pakistan International Airlines (PIA) | For Sale | The government hopes to sell PIA by November 2025. |
