Manhattan ‘eyesore’: Pakistan decides fate of Roosevelt Hotel

Dubai: Pakistan is moving decisively to transform its long-closed The Roosevelt Hotel, often described as “eyesore in Manhattan”, into a major redevelopment project, securing between $4 billion and $5 billion in joint investment.

The government is expected to appoint a financial adviser by the first week of March to structure the deal. The adviser will design a model under which Pakistan International Airlines (PIA), the hotel’s owner, retains ownership while a partner arranges financing for construction, renovation, and operations.

Adviser to the Prime Minister on Privatisation Muhammad Ali recently told journalists at the Pakistan Governance Forum (PGF) that the government seeks long-term benefits rather than selling the high-value asset in outright. “The objective is to generate maximum value while keeping ownership with the state,” he added.

Shuttered since 2020 and valued at over $1 billion, the century-old Roosevelt Hotel has become a symbol of neglect, prompting both public criticism and strategic interest. The property is now being considered for redevelopment rather than outright sale, in line with Pakistan’s broader $7 billion privatisation programme with the International Monetary Fund.

Pakistan has also signed a memorandum with the United States for joint redevelopment, covering operation, maintenance, renovation, and long-term revitalisation. The agreement was negotiated by U.S. Special Envoy Steve Witkoff under President Donald Trump. “The aim is to secure maximum value while strengthening Pakistan — US economic ties,” said a statement issued by the Pakistan Finance Ministry.

Deputy Prime Minister and Foreign Minister Ishaq Dar said the move reflects Pakistan’s strategy of “tailored cooperation” with partner countries, deepening ties with China under CPEC-II while reinvigorating relations with the United States in trade, technology, investment, and regional stability.

The Roosevelt Hotel redevelopment is a flagship project that could transform Pakistan’s Manhattan “eyesore” into a modern landmark, unlocking value from a prime overseas asset while retaining state ownership and strengthening bilateral economic ties.

Opened in 1924, the Roosevelt Hotel was for decades a fixture of New York hospitality, hosting celebrities, dignitaries and tourists just steps away from Grand Central Terminal. But after closing its doors to guests in 2020 amid the COVID-19 pandemic’s economic fallout, the property entered a new and turbulent chapter.

In 2023, the hotel was repurposed as a central intake and processing centre for newly arrived migrants. At the height of the migrant surge, thousands passed through its lobby and temporary dormitory-style rooms, making it a focal point of the city’s strained shelter system. While officials described it as a necessary humanitarian response, critics pointed to overcrowding, logistical mismanagement and rising costs.

Over time, the Roosevelt’s grand façade began to tell a different story. Boarded windows, heavy security presence, sanitation complaints and reports of disorder transformed what was once a celebrated address into what many residents and local business owners now describe as an “eyesore” in the heart of Midtown. The building’s deterioration has drawn concern from preservationists and community leaders who fear permanent damage to a historic structure.

PIA ownership

The hotel is owned by Pakistan International Airlines and its future has long been the subject of political and financial debate. The property’s uncertain ownership and management arrangements have further complicated efforts to chart a clear path forward.