New York Govt Cancels $220 Million Lease for PIA-Owned Roosevelt Hotel

The government of New York City has terminated its $220 million lease agreement with Pakistan International Airlines (PIA) for the Roosevelt Hotel after criticism over taxpayer money being used to house asylum seekers. The decision was announced by the New York City Mayor on Monday. The official attributed the closure to the city’s successful emergency response and cost-saving measures. The Roosevelt Hotel, which reopened in 2023 as a shelter, housed tens of thousands of migrants in its 1,025 rooms at an estimated cost of $200 per night. The city has seen a sharp decline in migrant arrivals, from 4,000 per week in 2023 to about 350 per week now. The Roosevelt Hotel served as a key processing center and handled 75 percent of migrants before being repurposed. The Roosevelt Hotel has been under PIA ownership since 2000. The caretaker government of Pakistan signed an agreement in February 2024 with a US consortium for a joint venture as part of PIA’s ongoing privatization process. In August 2024, Pakistan’s Privatisation Commission recommended a joint venture transaction structure for the hotel’s redevelopment.