JLL resigns as financial advisor for the privatization of Pakistan's Roosevelt Hotel

The Privatization Commission of Pakistan said Thursday that global real estate firm Jones Lang LaSalle (JLL) has resigned as Financial Advisor for the Roosevelt Hotel privatization deal, citing a potential conflict of interest.

In a formal communication, JLL offered to return all payments it received during the course of its engagement. The firm was appointed in January 2024 through a competitive process to guide the government on the future of the Roosevelt Hotel in New York.

According to the Privatization Commission, JLL had completed due diligence and submitted reports on transaction structures that aligned with global standards. However, the firm said that after the lease with the City of New York ended, interest in the Roosevelt Hotel surged among its clients, creating a conflict of interest.

“This has put them in a compromising position,” the statement said. “They have decided to resign to avoid any perceived or actual conflict.”

The Roosevelt Hotel was shuttered in 2020 following financial losses during the COVID-19 pandemic. In 2023, it was temporarily leased to the City of New York to house asylum seekers, generating more than $220 million in projected revenue. That lease expired in 2024, and the property currently has no announced income stream.

Just two weeks ago, the Cabinet Committee on Privatization approved the joint venture model proposed by JLL, citing its potential to maximize long-term value and provide greater fiscal flexibility. The other options under consideration were an outright sale and a long-term lease.

In light of JLL’s resignation, the Privatization Commission said it is fast-tracking the appointment of a new financial advisor to continue the transaction process.

The government reaffirmed its commitment to proceed with the Roosevelt Hotel’s privatization transparently and by legal requirements.