The Pakistani government is exploring various options for the Roosevelt Hotel in New York City, including the possibility of demolishing the century-old building to construct a multi-storey skyscraper, according to a report published by Bloomberg.
This move is reportedly part of Pakistan’s efforts to fulfill commitments made under its $7 billion IMF loan agreement.
Named after former U.S. President Theodore Roosevelt, the historic hotel is located in Midtown Manhattan and is considered one of Pakistan’s most valuable foreign assets. Pakistan purchased the property in 2000.
Due to mounting financial losses, the 1,000-room hotel was shut down in 2020 and temporarily used as a shelter for migrants. In July, the government approved a “transaction structure” for the hotel, stating it would not be sold outright but rather used in a joint venture model to generate long-term value.
Mohammad Ali, Adviser to the Prime Minister on Privatization, told Bloomberg that one option is to demolish the historic building and construct a new skyscraper in its place. He added that the government is seeking a joint venture, where Pakistan provides the land and the partner brings investment. Retaining the hotel is also on the table, if found financially viable.
A decision is expected in the coming months once a joint venture partner is finalized and a market assessment is complete.
According to Bloomberg, the federal government is working to restructure or privatize state-owned entities to meet IMF conditions.
The first major asset likely to be sold is Pakistan International Airlines (PIA), which has long relied on government bailouts but is now seen as unsustainable.
Mohammad Ali noted that several of the country’s largest business groups have expressed interest in acquiring PIA and have the capacity to run it efficiently. An estimated $500 million investment would be needed to return the airline to profitability.
