Govt Plans $4 Billion High-Rise Redevelopment of New York’s Roosevelt Hotel

Pakistan will pursue a high-rise redevelopment of the iconic Roosevelt Hotel in New York through a joint-venture privatization model, aiming to attract $3-4 billion in investment and boost the value of its stake by up to 250 percent.

The government has ruled out an outright sale of one of its most prized overseas assets.

Muhammad Ali, the prime minister’s adviser on privatisation, said the 16-storey hotel in midtown Manhattan will be redeveloped rather than sold, as an immediate disposal would not realise the site’s full commercial potential. A detailed study by Jones Lang LaSalle Americas Inc. (JLL) last year found the property could support a much taller structure of 50 to 60 storeys. The hotel was recently transferred to the PIA holding company as part of the airline’s restructuring.

For over two decades, various governments have floated proposals to sell, lease, or redevelop the Roosevelt Hotel, but none have materialised. Under the new plan, the government will contribute the land, while a private partner is expected to inject about $1 billion in equity, with an additional $2-3 billion to be raised through debt financing. After redevelopment, the government’s ownership would dilute from 100 percent to around 40-50 percent, but officials expect the value of its holding to rise sharply.

The Roosevelt Hotel, acquired by Pakistan in 2000, is among the country’s most valuable foreign assets. The more than 1,000-room property was closed in 2020 due to mounting losses and later briefly operated as a migrant shelter.

Ali, who also chairs the Privatization Commission, said there is strong interest from major international players, including global banks and technology firms, looking to develop their own premises at the site. Despite this demand, the government has opted against a direct sale.

In contrast, the Hotel Scribe in Paris, also transferred to a PIA holding company during the airline’s restructuring, will not be privatized at this time. The government has decided to retain the Paris asset for now, with no immediate plans for sale or development, Ali added.