Pakistan is considering multiple options for its PIA-owned Roosevelt Hotel in New York City, with one proposal being to demolish the historic landmark and replace it with a skyscraper, according to a report by Bloomberg.
This move is reportedly part of Islamabad’s broader plan to meet its financial reform commitments under the International Monetary Fund (IMF) program.
The 1,025-room hotel, located in midtown Manhattan, was closed in 2020 due to major revenue losses during the COVID-19 pandemic. In 2023, it briefly served as temporary housing for migrants before being shut down again.
In an interview with Bloomberg in Islamabad, Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, said the government is exploring a partnership model where Pakistan would provide the land and a private partner would bring in the capital.
He added that keeping the hotel operational remains an option if it proves financially viable.
“We will gain understanding regarding this in the coming months once the JV partner is finalized and market feedback is gathered,” Ali stated.
Part of Wider Privatization and IMF Commitments
This move aligns with Prime Minister Shehbaz Sharif’s administration’s broader privatization strategy, a key part of Pakistan’s $7 billion IMF loan agreement.
The first major state asset expected to be privatized is Pakistan International Airlines (PIA), with Ali expressing optimism that the deal could be completed by November.
He also revealed that several major Pakistani business groups are interested in acquiring PIA and have the capacity to manage it effectively. Ali estimated that the airline would require an investment of around $500 million to return to profitability.
Bloomberg added that Pakistan is currently in the process of selecting advisers for the Roosevelt Hotel deal. The government plans to appoint a new adviser by the end of this month, with proposals received from firms including Citigroup Inc., CBRE Group Inc., and Savills PLC.
