ISLAMABAD: Pakistan has decided to pursue a high-rise redevelopment of the iconic Roosevelt Hotel in New York through a joint-venture privatization model, aiming to attract between $3 billion and $4 billion in investment. The move is expected to significantly boost the value of Pakistan’s stake in one of its most prized overseas assets.
The government has firmly ruled out an outright sale of the Roosevelt Hotel, citing concerns that a direct disposal would fail to capture the site’s full commercial potential. Muhammad Ali, the prime minister’s adviser on privatisation, said the 16-storey property in midtown Manhattan would instead undergo large-scale redevelopment.
According to Ali, a detailed study conducted last year by Jones Lang LaSalle Americas Inc. found that the site could support a much taller structure ranging from 50 to 60 storeys. As a result, authorities believe redevelopment offers far greater long-term value. The hotel was recently transferred to the PIA holding company as part of Pakistan International Airlines’ broader restructuring process.
For more than two decades, successive governments have explored proposals to sell, lease or redevelop the Roosevelt Hotel. However, none of those plans materialised. Under the new framework, the government will contribute the land, while a private partner is expected to invest about $1 billion in equity. In addition, developers are likely to raise another $2 billion to $3 billion through debt financing.
Following redevelopment, the government’s ownership stake would dilute from 100 percent to roughly 40 to 50 percent. Nevertheless, officials expect the value of that reduced stake to rise by as much as 250 percent, driven by the project’s scale and location.
Ali also noted strong interest from major international investors, including global banks and technology companies seeking to establish their own premises at the site. Despite this demand, the government remains committed to a partnership model rather than a sale.
Meanwhile, Ali said the government has no immediate plans to privatize or redevelop the Hotel Scribe in Paris. That property, also transferred to a PIA holding company, will be retained for now as authorities focus on the Roosevelt project.
