ISLAMABAD: The Pakistan International Airlines (PIA) has entered into an agreement with the New York City Health and Hospitals Corporation to lease out the Roosevelt Hotel in the United States. The hotel will be operated by the local corporation for a period of three years, providing residential facilities for housing migrants.
As part of the agreement, the US firm has provided an 18-month guarantee to PIA Investment Management. Additionally, a settlement agreement has been reached between the New York City Health & Hospital Corporation and the Roosevelt Hotel employees’ union.
Following this agreement, the Roosevelt Hotel has resumed its operations, as confirmed by the PIA management in a letter to stockholders at the Pakistan Stock Exchange. The decision to lease out the hotel came after the approval of the Ministry of Aviation’s recommendations by the Economic Coordination Committee (ECC) of the Cabinet.
The committee formed a four-member negotiating team, led by the Secretary of the Aviation Division, to engage in discussions with the New York City government and the Hotel Union. The ECC also authorized the use of funds amounting to $1.145 million from the available balance as bridge financing for the reopening work at the hotel.
The lease agreement signifies a strategic move for PIA, allowing them to utilize the hotel’s 1,025 rooms for migrant business over the next three years, generating potential revenue. This development highlights PIA’s efforts to explore new opportunities and optimize its assets for financial gains.
