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The Government of Pakistan is aiming to generate at least $100 million from the sale of the Roosevelt Hotel in New York during the 2025–26 fiscal year, according to recent developments from the Privatization Commission.
The Privatization Commission has finalized the base valuation of the iconic Roosevelt Hotel, with the transaction’s final value hinging on the Cabinet Committee on Privatization (CCoP)’s approval of the sale structure.
Depending on the path chosen, the proceeds could vary significantly:
- A simple sale of the hotel in its current condition is expected to bring in the lowest return.
- If the government secures regulatory approval for redevelopment, the value could potentially double.
- A joint venture with a private entity could raise the property’s worth to four or five times the base valuation, but this model would deliver lower upfront proceeds in FY26, with long-term gains realized later.
The Roosevelt Hotel’s sale is a cornerstone of the government’s Rs. 86 billion ($306 million) privatization target for FY2025–26. Other key components of this plan include the privatization of Pakistan International Airlines (PIA) and three electricity distribution companies.
The property’s market assessment and valuation have been conducted by Jones Lang LaSalle (JLL), a prominent U.S.-based real estate firm. The Privatization Commission now awaits the final green light from the CCoP to move forward.
No Revenue Stream Post-Lease Expiry
The Roosevelt Hotel was once a symbol of Pakistan’s state-owned assets abroad. It has remained closed since 2020 due to heavy losses during the COVID-19 pandemic.
In 2023, it was briefly leased to the City of New York to house asylum seekers. This lease brought in over $220 million in projected rental income.
The lease expired in 2024, and the hotel now has no revenue. Additionally, this makes its privatization a pressing priority for the government.
