Pakistan eyes $1 billion valuation for Roosevelt Hotel in NYC amid redevelopment push

Pakistan is seeking a minimum valuation of $1 billion for its iconic Roosevelt Hotel in New York City and is open to selling a minority stake as it scouts for a redevelopment partner, according to a senior government official and Reuters.

Named after former U.S. President Theodore Roosevelt, the century-old hotel in midtown Manhattan — acquired by Pakistan in 2000 — is considered one of the nation’s most prized foreign assets. With over 1,000 rooms, the hotel ceased operations in 2020 due to mounting losses and briefly functioned as a migrant shelter.

As part of its sweeping $7 billion IMF-supported privatization plan, Pakistan’s government on Tuesday approved a strategic transaction structure for the Roosevelt Hotel. Officials emphasized that this will not be an outright sale, opting instead for a joint venture model to maximize long-term returns.

The financial adviser had evaluated three strategic options: an outright sale, a joint venture with multiple options, and a long-term lease. Of these, the joint venture model with various options was approved.

This approach is aimed at maximizing long-term value for the country while ensuring flexibility and multiple exit opportunities and minimizing future fiscal exposure.

“These milestone de­cisions reflect the government’s strong commitment to advancing its economic reform and privatization agenda in a tra­­­­nsparent, market-driven and investor-friendly manner,” said an official.

The 42,000 square foot site, located near Times Square, Grand Central Terminal, and Fifth Avenue, is considered among the most coveted in New York real estate. Jones Lang LaSalle (JLL) has been appointed to oversee the process, which is expected to be completed within the next six to nine months.

The sources said that the property could be redeveloped for residential-cum-office use, adding that “interest level is extremely high.”

Alongside the hotel deal, Pakistan has also approved four parties to bid for shares in the heavily indebted national carrier, Pakistan International Airlines (PIA), which owns the Roosevelt Hotel through its investment arm.