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PIA Owned Roosevelt Hotel Will Now Run Under a Joint Venture

Adviser to the Prime Minister on Finance and Revenue recently chaired a meeting of the Cabinet Committee on Privatization at the Cabinet Division.

The Cabinet Committee on Privatization (CCOP) has decided that the Pakistan International Airlines-owned Roosevelt Hotel in New York will not be privatized and will be run under a joint venture with a private company.

CCoP reviewed one point agenda on the Privatization of Roosevelt Hotel (Manhattan, New York) asset owned by PIA-Investment Limited. As requested by the Aviation Division, CCoP decided to de-notify the Roosevelt Task Force formed earlier under the chairmanship of Minister for Privatization for framing Terms of Reference for leasing Roosevelt’s site for setting up a joint venture project.

CCoP also directed the privatization commission to hire a Financial Adviser for the transaction in the light of the report of Deloitte from July 2019 which recommended:

The highest and best use of the Roosevelt Hotel Property is to redevelop the site into a mixed-use (through Joint Venture) of primarily office towers over retail and condominium.

It was also directed that Deloitte will update its study on the hotel transaction in the next 4 weeks and the same shall be shared with the CCoP.

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ProPK Staff