ISLAMABAD — The government of Pakistan is seeking a valuation of at least $1 billion for the Roosevelt Hotel in New York and has approved offering a minority stake in the property under a joint venture model, as part of its broader IMF-backed privatisation programme, reported Business Recorder.
The iconic Roosevelt Hotel, owned by Pakistan International Airlines (PIA) through its investment arm, was shut down in 2020 due to mounting losses and has since only been partially operational, including a stint as a migrant shelter.
A senior Pakistani official, speaking on condition of anonymity, confirmed that the government will not pursue an outright sale but is inviting redevelopment proposals from potential joint venture partners. The official noted that the state will retain ownership through an equity arrangement, although the exact size of the offered stake has not been disclosed.
The Cabinet Committee on Privatisation on Tuesday approved the transaction structure for the Roosevelt Hotel, which is located in Manhattan near key landmarks such as Grand Central Terminal, Times Square, and Fifth Avenue. The prime 42,000-square-foot property is expected to be redeveloped into a mixed-use residential and office complex.
The process will be managed by real estate advisory firm Jones Lang LaSalle (JLL), with the government targeting deal closure within six to nine months. The redevelopment timeline is estimated at four to five years.
“It is among the best pieces of land in New York real estate… the interest level is extremely high,” the official said, adding that Pakistan expects an initial payment of $100 million from the joint venture by June 2026.
No official comment has been provided by JLL, the Privatisation Commission, or PIA. The Privatisation Commission has also clarified separately that no base price has yet been determined for the asset.
The Roosevelt Hotel initiative is part of Pakistan’s $7 billion privatisation drive agreed with the International Monetary Fund (IMF), which also includes the planned sale of a stake in loss-making PIA. Four bidders have already been pre-qualified for that transaction.
