Pakistan Seeks $1 Billion+ for Iconic Roosevelt Hotel, Eyes Manhattan Redevelopment
Pakistan is aiming for a valuation exceeding $1 billion for the historic Roosevelt Hotel in New York City and is preparing to offer a minority stake to a development partner, marking a significant move in the nation’s ambitious privatization efforts.
Pakistan’s government approved a plan on Tuesday to pursue a joint venture for the landmark property, rather than an outright sale, in an effort to maximize its long-term value. The decision comes as the country navigates a $7 billion economic stabilization package backed by the International Monetary Fund (IMF).
A Century of History, Mounting Losses
Named after former U.S. President Theodore Roosevelt, the hotel has been a fixture of midtown Manhattan since its opening. Acquired by Pakistan in 2000, the over 1,000-room hotel is considered one of the country’s most valuable overseas assets. However, the property has faced increasing financial challenges, leading to its closure in 2020. It briefly operated as a shelter for migrants before being shuttered again.
“It is among the best pieces of land in NY real estate,” a senior official stated, underscoring the property’s prime location near Grand Central Terminal, Times Square, and Fifth Avenue.
Privatization Push and Joint Venture Structure
The move to find a redevelopment partner is part of a broader $7 billion privatization initiative supported by the IMF. The government intends to retain an equity partnership in the project, though the exact size of the stake being offered remains undisclosed.
Jones Lang LaSalle (JLL) has been selected to manage the process, with an anticipated completion timeframe of six to nine months. The government is hoping to redevelop the 42,000 square foot property for a mixed-use purpose, combining residential and office spaces.
Financial Expectations and Timeline
Pakistan anticipates receiving an initial payment of $100 million from the joint-venture partnership by June 2026. The estimated redevelopment timeline is four to five years, and according to the official, “the interest level is extremely high.”
The Privatisation Ministry, Pakistan International Airlines (PIA) – the hotel’s owner through its investment arm – and JLL all declined to comment on the ongoing process. This week, Pakistan also greenlit four parties to bid for a stake in the financially struggling PIA.
The pursuit of a joint venture partner for the Roosevelt Hotel represents a strategic shift for Pakistan, aiming to unlock the value of a prestigious but underperforming asset while maintaining a degree of ownership and influence. The success of this venture will be closely watched as a key indicator of the country’s economic reform efforts.
