ISLAMABAD: The Pakistan government has announced plans to pursue a high-rise redevelopment of the Roosevelt Hotel in New York through a joint venture (JV) privatisation model. The project is expected to attract an investment of $3-4 billion, with the government aiming to increase the value of its stake by as much as 250%.
This development follows the government’s decision to rule out an outright sale of the property, which is considered one of Pakistan’s most prized overseas assets.
The new plan involves the government contributing the land, while a private partner would invest approximately $1 billion in equity, with an additional $2-3 billion expected to be raised through debt financing. Upon completion of the redevelopment, the government’s 100% ownership would be reduced to 40-50%, but officials expect the overall value of its stake to rise considerably.
Muhammad Ali, the Prime Minister’s advisor on privatisation, clarified that the 16-storey hotel in midtown Manhattan would be redeveloped into a 50-60 storey structure, significantly increasing its commercial potential.
Earlier, the property was transferred to the PIA Holding Company during the airline’s restructuring. A study conducted by Jones Lang LaSalle Americas Inc. (JLL) last year showed that the site could accommodate a much taller building.
Ali also mentioned that there is strong interest from global players, including commercial banks and technology firms, who are eager to develop their own premises at the site. Despite this interest, the government has chosen redevelopment over a direct sale.
The Roosevelt Hotel, acquired by Pakistan in 2000, is among the country’s most valuable foreign assets. The property, with more than 1,000 rooms, was closed in 2020 due to losses but was later used as a migrant shelter.
In contrast, the Hotel Scribe in Paris, also transferred to the PIA Holding Company, will not be privatised at present. The government has opted to retain the asset with no immediate plans for sale or development.
