ISLAMABAD – Pakistani government gives another thought to selling iconic, PIA-owned Roosevelt Hotel in New York, and now the property standing in the heart of Midtown Manhattan, which was once a grand icon that has seen generations of travelers pass through its doors, is being considered to be demolished to build skyscrapper in its place.
The hotel was closed during the pandemic and briefly opened to shelter migrants, and was once owned by national air carrier remained shuttered, its fate uncertain. The government is now considering razing premises to generate funds.
Adviser to PM on privatization Muhammad Ali said the government is exploring a joint venture model in which Pakistan contributes the land and a private partner provides the investment. Retaining the hotel is also being considered if it proves financially viable.
He indicated that a decision on the hotel’s future could come in the next few months, after selecting a suitable joint venture partner and assessing market conditions, expressing confidence that PIA could be sold by November 2025, noting that interested buyers are among the country’s largest business groups, capable of managing and revitalizing the airline. He estimated an investment of roughly $500 million would be required for a turnaround.
The government is in the process of appointing advisers to oversee the hotel transaction, which some have dubbed “the new Ellis Island” for its historical role in migrant reception. Final adviser selection is expected later in October, following bids from seven major firms, including Citigroup, CBRE Group, and Savills.
Once a glamorous landmark and temporarily a shelter for asylum seekers, the hotel could soon be transformed into a multimillion-dollar skyscraper, sending shockwaves through both the real estate and aviation worlds.
Earlier this year, US-based firm Jones Lang LaSalle completed detailed valuation, and hotel’s worth could skyrocket if regulatory approvals for redevelopment are secured. A direct sale “as-is” would fetch the lowest returns, but a joint venture could multiply its value by four to five times—even if initial revenue in the first year remains modest.
The hotel was closed since 2020 due to COVID losses, and generated nearly $220 million in projected rental income when leased to New York City in 2023 to house asylum seekers. That lease ended in 2024, and now Pakistan is pushing ahead with a bold plan to monetize one of its most high-profile international assets.
Its sale forms a key part of Pakistan’s broader privatization drive, which aims to raise Rs86 billion in FY26, including the divestment of Pakistan International Airlines and three major power distribution companies.
PIA s Roosevelt Hotel leased for three years to New York City firm
