Pakistan International Airlines (PIA)-owned Roosevelt Hotel will no longer serve as a migrant shelter after New York City terminated its $220 million lease agreement.
The decision comes amid growing criticism over the use of American taxpayer money to house asylum seekers.
New York City Mayor Eric Adams announced the closure on Monday, citing a sharp decline in migrant arrivals and the administration’s efforts to manage the crisis. At its peak in 2023, the city received 4,000 migrants weekly, a figure that has now dropped to approximately 350.
The Roosevelt Hotel, a historic landmark in Manhattan, was shut down in 2020 due to financial losses from the Covid-19 pandemic.
In June 2023, the Pakistani government leased it to New York City for three years, converting it into a shelter. The facility reportedly housed tens of thousands of migrants across its 1,025 rooms at an estimated cost of $200 per night.
Mayor Adams credited the closure to the city’s emergency response strategy. “Thanks to the successful strategies we implemented in our city and policies we advocated for nationally, we’ll be closing this site that served new arrivals since the height of this crisis in 2023,” he said in a post on social media platform X.
The hotel played a crucial role in processing about 75% of migrant arrivals in the city. “Because of our sound policy decisions and successful emergency response, we’re able to close this site and help even more migrants take the next step in their journeys — while saving taxpayers millions of dollars,” Adams added.
In February 2024, as part of its privatization strategy, the caretaker government of Pakistan signed a Financial Advisory Services Agreement (FASA) with a U.S. consortium led by Jones Lang LaSalle Americas Inc. (JLL) for a joint venture to redevelop the property. By August, the Privatisation Commission’s board recommended a joint venture as the most suitable transaction structure.
The Roosevelt Hotel, named after former U.S. President Theodore Roosevelt, opened in 1924 and is located next to Grand Central Terminal. Once a symbol of luxury, the 19-story building has undergone various ownership changes, with PIA acquiring full control in 2000.
With its lease agreement now ending, the hotel’s future will depend on upcoming redevelopment plans.
