Pakistan is weighing multiple options for the future of the Roosevelt Hotel in New York, including the possibility of demolishing the historic building to construct a skyscraper, Bloomberg reported.
The decision is linked to the government’s commitments under a $7 billion International Monetary Fund (IMF) loan programme, which requires the restructuring or privatisation of state-owned enterprises.
Acquired by Pakistan in 2000, the century-old hotel, named after former US president Theodore Roosevelt, has long been considered one of the country’s most valuable foreign assets. With over 1,000 rooms, the property closed in 2020 due to mounting losses and has since operated briefly as a migrant shelter.
In July, the government approved a “transaction structure” for the Roosevelt Hotel, opting against an outright sale. Instead, officials proposed a joint venture (JV) model, with Pakistan contributing the land while a private partner provides investment.
According to Muhammad Ali, the prime minister’s adviser on privatisation, demolishing the building to build a skyscraper is among the options. “We will have clarity on this in the next few months after finalisation of the JV partner and market sounding,” he said.
The privatisation push also extends to Pakistan International Airlines (PIA), which has survived on government bailouts for years. Bloomberg reported that PIA could be the first major asset sold, with the government targeting a November deadline.
Ali estimated around $500 million would be needed to turn the airline around, adding that leading domestic business groups with the capacity to manage the carrier are showing interest.
Pakistan is also in the process of appointing advisers for the Roosevelt Hotel deal. Seven groups, including Citigroup Inc, CBRE Group Inc, and Savills PLC, have submitted bids. A final decision on the adviser is expected later this month. Meanwhile, PIA posted a rare pre-tax profit in the first half of 2025, ahead of its planned sale.
