The Economic Coordination Committee (ECC) of the Cabinet on Thursday did not approve a $17.6 million bailout request for the Roosevelt Hotel in New York, while the Privatisation Commission continues to review a three-month-old proposal to reopen the facility, The Express Tribune reported.
The delay has exposed the hotel to arbitration after a union filed a case, with the arbitrator urging the management to decide on reopening or face an award based on the claims.
The ECC, chaired by Finance Minister Senator Muhammad Aurangzeb, considered a summary from the Ministry of Defence seeking financial support and permission to reopen the hotel following the termination of its lease agreement with New York City in June 2025.Â
The Defence Ministry had proposed $17.6 million to cover outstanding liabilities and costs for July-December 2025. Funds from the PIAIL-run Central Hotel in Abu Dhabi are currently being used to sustain Roosevelt Hotel operations. Officials noted that reopening the facility would require $61 million for refurbishment, while closure would cost $131 million over three years.
The ECC instructed Pakistan International Airlines Investment Limited (PIA-IL) to hold separate consultations with the Ministry of Finance to rationalize their funding request, which the committee considered inflated.
It reviewed a summary from the Ministry of Defence seeking financial support for the Roosevelt Hotel in the form of a Technical Supplementary Grant (TSG). The committee expressed support for meeting the hotel’s most urgent financial needs and directed the ministry to revisit and verify its estimates before resubmitting the proposal, according to an official statement.
Initially, the hotel management requested $28.6 million, which was rejected due to funding constraints. A subsequent request of $16.7 million was also not approved pending a detailed assessment of actual requirements.
Separately, the Privatisation Commission is moving forward with a long-term joint venture for the multi-purpose redevelopment of the property and has received seven requests for proposals.
The process had been delayed after transaction adviser Jones Lang LaSalle withdrew in July due to a potential conflict of interest. A new adviser is expected to be appointed within two weeks, with the transaction targeted for completion within six months.
