The Privatisation Commission has confirmed that global real estate advisory firm Jones Lang LaSalle (JLL) has stepped down from its role in the privatisation of the Roosevelt Hotel in New York, citing a potential conflict of interest stemming from rising interest among its own clients.
JLL’s resignation, communicated formally to the government, comes as the firm reported heightened client interest in the iconic Manhattan property following the termination of its lease agreement with New York City. To avoid what it described as a “perceived or actual conflict,” JLL chose to withdraw from the assignment and has offered to return all advisory fees received during the engagement.
The Roosevelt Hotel is owned by Pakistan International Airlines Investment Limited (PIAIL) and has long been a subject of privatisation discussions in Pakistan. Market interest in the property has fluctuated over the years, driven by changing real estate dynamics in New York.
JLL was brought on as Financial Advisor in January 2024 after a competitive selection process. Its responsibilities included conducting due diligence and developing the transaction structure for the hotel’s proposed privatisation.
With JLL’s abrupt exit, the Privatisation Commission has moved swiftly to initiate the hiring of a new Financial Advisor. Officials said the incoming firm will build on the preparatory work already completed, ensuring no disruption in the transaction’s progress.
“The privatisation process will continue in a transparent and competitive manner,” the commission stated, reaffirming the government’s commitment to concluding the Roosevelt Hotel deal in accordance with legal and regulatory requirements.
