Roosevelt Hotel: New York’s lost echo of Pakistan’s glory

Walking through Midtown Manhattan, between Madison and Vanderbilt Avenue, few would recognize the connection between an imposing Italian Renaissance Revival-style building spanning over 40,000 square feet and Pakistan.

That building is the Roosevelt Hotel, owned by Pakistan International Airlines (PIA), the country’s cash-strapped flag carrier.

In June, the hotel is set to face the cancellation of a $220 million lease agreement signed with the State of New York in 2023. The announcement was made by New York Mayor Eric Adams just a few weeks ago.

As a historic and highly valuable property, the Roosevelt Hotel has caught the attention of New York real estate developers, who are closely monitoring the possibility of its acquisition.

A screen grab of New York's Roosevelt Hotel in Midtown Manhattan..Nukta

“There will be no dearth of buyers,” said Imran Igra, a New York-based real estate developer.

"I remember it clearly—back in the day, President (Donald) Trump repeatedly expressed interest in buying this hotel," Igra told Nukta.

New York is Trump’s hometown, where he built his fortune in real estate long before becoming President of the United States.

Complex process

However, selling or privatizing the Roosevelt Hotel is not a simple overnight process. The first major challenge was the cancellation of the lease, which initially provided PIA with a cash payment of $18 million at signing.

“New York City is liable to pay the money they owe to PIA, as they are ending the lease before its expiration,” Igra noted.

Once a symbol of American opulence, the 19-story Italian Renaissance Revival hotel—named after Theodore Roosevelt—has fallen on hard times.

Pakistan’s connection to Roosevelt dates back to 1978 when PIA first pursued its acquisition. A deal was initially finalized with its previous owner, Paul Milstein. The lease was formally announced in March 1979 with the support of Saudi Prince Faisal Bin Khalid bin Abdul Aziz. PIA eventually purchased the hotel in 2000. However, it shut its doors in 2020 due to severe financial losses caused by the COVID-19 pandemic.

Lease and controversy

The Roosevelt Hotel’s lease came into focus after Trump announced a policy ending Safe Haven cities and shelter homes for refugees. The hotel currently houses more than 2,500 refugees, and New York must comply with federal policies requiring it to end major shelter leases—including that of the Roosevelt Hotel.

The agreement, which leased all 1,025 rooms at $210 per night, was originally guaranteed for one year but later extended to three years. However, the deal sparked intense controversy in the U.S.

Critics—most notably Vivek Ramaswamy—slammed the use of taxpayer funds for a foreign-owned hotel, calling the arrangement “nuts” and questioning government spending priorities. Elon Musk and other prominent figures also weighed in, using the Roosevelt Hotel as an example of what they saw as mismanagement of public funds.

Piece of Pakistan’s history

For Pakistan, the Roosevelt Hotel represents more than just a financial asset—it is a symbol of PIA’s former glory.

New York-based journalist Movi Siddique emphasized its deep historical and political significance for Pakistanis.

“Name one notable Pakistani politician or dignitary who hasn’t stayed at this hotel? From General Zia to General Musharraf, and now President Asif Ali Zardari,” he said. “The last Pakistani politician to visit was former Prime Minister Imran Khan.”

Real estate goldmine?

According to real estate developers, the Roosevelt Hotel is a goldmine. The average price of real estate in Midtown Manhattan is around $23,000 per square foot.

“I estimate the property could bring in anywhere between $1 billion to $1.8 billion for PIA,” Igra said. However, he cautioned that the final price depends on the condition of the hotel once the shelter is vacated.

Rumors are already circulating about a massive skyscraper development, taking advantage of recent rezoning to maximize floor-area ratio. However, such a project would be a Herculean undertaking, requiring complex union negotiations, navigating New York’s Land Use Review Process, and securing an anchor tenant.

“You’re looking at a three-to-five-year process,” an investment specialist commented.

Wear and tear

The state of the hotel itself is a major concern for commercial real estate firms.

“It wasn’t in great shape before the migrants moved in, and God knows what it’s like now,” an industry insider remarked.

The wear and tear from housing tens of thousands of refugees—some with criminal records—has undoubtedly taken its toll. However, Igra believes that renovations would not exceed $200 million.

Pakistan’s privatization plans

According to media reports, the Cabinet Committee on Privatization has yet to make a final decision on the hotel’s fate. However, Pakistan has moved forward with its privatization, hiring Jones Lang LaSalle Americas (JLL) as a financial advisor for $7.5 million (PKR 2.1 billion).

The decision has stirred a deep sense of regret among Pakistanis with ties to the hotel.

Siddique, among others, emphasized its connection to their homeland rather than just its financial worth.

“We have met people here, worked with them, and reported from these lobbies. We have shared laughter and moments of disappointment in this hotel,” he said.

The hotel’s closure, he added, would leave him with a profound sense of loss.