The Privatisation Commission of Pakistan has categorically denied media reports suggesting that a $100 million base price has been fixed for the proposed sale of the Roosevelt Hotel in New York, terming such claims premature and misleading.
In an official clarification issued on Saturday, the commission stated that no base price has been determined for the iconic Manhattan property, and that any valuation can only be established at the time of bidding, depending on the final transaction structure approved by the government.
The commission said that recent media reports had inaccurately quoted Adviser to the Prime Minister on Privatisation, Muhammad Ali. The adviser, according to the clarification, had merely referred to an indicative figure of a potential initial partial payment by a successful bidder, which might materialise during the current fiscal year — not the base price of the property itself.
It further said that the actual base price and the full proceeds to be realised from the transaction would depend on the transaction structure and final terms of the agreement, which remain under deliberation. The matter is expected to be presented in the upcoming meeting of the Cabinet Committee on Privatisation (CCOP).
The Roosevelt Hotel, wholly owned by Pakistan International Airlines through its holding company PIA-IL, has long been the subject of privatisation debates. Despite financial losses and its temporary closure in 2020 during the COVID-19 pandemic, the asset continues to be viewed as a valuable real estate holding for the government.
In June 2023, Pakistan signed a three-year, $220 million lease agreement with the City of New York to operate the Roosevelt Hotel as a shelter for asylum seekers. The agreement marked a return to commercial operation after its pandemic-era closure.
Earlier this year, in February, the government signed a Financial Advisory Services Agreement (FASA) with a consortium led by Jones Lang LaSalle Americas Inc. (JLL) to explore a joint venture development model for the hotel, rather than an outright sale. The plan aims to balance revenue generation with asset retention.
Last month, Defence Minister Khawaja Asif told the National Assembly that the Roosevelt Hotel is a “strategic gem” and reiterated the government’s intent to pursue a joint venture rather than a sale. “Selling might patch a short-term fiscal wound,” Asif said, “but a joint venture ensures Pakistan keeps a foot on that lucrative property while raking in steady profits.”
The hotel, located adjacent to Grand Central Terminal in midtown Manhattan, was built in 1924 and is named after U.S. President Theodore Roosevelt. At 19 stories tall, it remains one of Pakistan’s most high-profile foreign assets. In late 2024, it was reported that Qatar had expressed interest in partnering with Pakistan on its management.
While the fate of the Roosevelt Hotel continues to draw attention due to its symbolic and financial value, officials now emphasize that any decision will be based on long-term economic strategy rather than short-term gain.
