ISLAMABAD: The Pakistan government has announced plans to redevelop the Roosevelt Hotel in New York into a high-rise structure through a joint venture (JV) privatisation model, in a move expected to attract $3-4 billion in investment. Officials aim to increase the value of Pakistan’s stake in the property by up to 250%, according to reports in The News.
The government has ruled out an outright sale of the hotel, one of its most prized overseas assets, instead opting for a redevelopment plan in which it contributes the land while a private partner invests roughly $1 billion in equity. An additional $2-3 billion is expected to be raised through debt financing. Following the redevelopment, Pakistan’s 100% ownership is expected to reduce to 40-50%, while the overall value of its stake is projected to rise substantially.
Muhammad Ali, Prime Minister’s advisor on privatisation, explained that the existing 16-storey hotel in midtown Manhattan would be transformed into a 50-60 storey building, significantly enhancing its commercial potential. He highlighted strong interest from global players, including commercial banks and technology firms, keen to establish operations at the site.
Originally acquired by Pakistan in 2000, the Roosevelt Hotel features over 1,000 rooms. The property was closed in 2020 due to sustained losses but was later repurposed as a migrant shelter. The redevelopment plan follows a study conducted last year by Jones Lang LaSalle Americas Inc. (JLL), which confirmed the site could accommodate a taller structure.
In contrast, the Hotel Scribe in Paris, also transferred to the PIA Holding Company during airline restructuring, will not be privatised at this time. The government has decided to retain the Paris property with no immediate plans for sale or redevelopment.
The Roosevelt Hotel project represents a strategic effort by Pakistan to monetise its overseas assets while leveraging private investment and modernising the property to maximise returns. The JV model aims to balance public ownership with commercial efficiency, creating a high-value asset in one of the world’s most competitive real estate markets.
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