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Source: Pakistani authorities are valuing the Roosevelt Hotel at $1 billion.

A senior government official revealed that Pakistan wants to know the value of the Roosevelt Hotel in New York. It is also willing to sell a small minority share in the property.

Theodore Roosevelt is the name of the former U.S. president who owned this century-old midtown Manhattan property, which Pakistan acquired in 2000. The hotel, which had over 1,000 rooms, was closed in 2020 due to mounting losses. It also briefly operated as a refuge for migrants.

In order to maximize the long-term value, the government of Pakistan has approved a "transaction model for the Roosevelt Hotel", as part of its $7 billion IMF-backed Privatisation drive. The government did not provide any further details.

The senior Pakistani official stated that the government would retain ownership of the project via an equity partnership but refused to disclose the size stake offered to any possible JV partner.

The official refused to name himself because the process was confidential. JLL, or Jones Lang LaSalle, will run the process and the government is eyeing a valuation of over $1 billion for the 42,000 square feet property it hopes could be redeveloped for residential-cum-office use, the official said.

It is one of the most beautiful pieces of real estate in New York. The official said that the process will begin immediately and be completed within the next six to nine months.

JLL and Pakistan International Airlines, which owns the property through its investment arm, as well as the Pakistan Privatisation Ministry, failed to respond to requests for comment.

Pakistan approved this week four bidders for a stake of the debt-ridden PIA.

The hotel is near New York's top destinations, including Grand Central Terminal, Times Square and Fifth Avenue. It is in the most lucrative commercial zone of Manhattan.

The official added that "the interest level is extremely high."

The government announced in June that it expected the first payment of $100 million from the joint venture partnership to be made by June 2026. Reporting by Ariba Shehid in Karachi, editing by Aditya K. Kalra and Raju G. Gopalakrishnan

(source: Reuters)