PIA Plans New Skyscraper for Roosevelt Hotel Site

Pakistan is exploring options for its PIA-owned Roosevelt Hotel in New York City, including demolishing it for a skyscraper. The move aims to support Islamabad’s commitments to the International Monetary Fund (IMF), according to Bloomberg. The 1,025-room hotel, located in midtown Manhattan, closed in 2020 due to heavy losses during the COVID-19 pandemic. It briefly housed migrants in 2023 before shutting down again.

Adviser to the Prime Minister on Privatisation, Muhammad Ali, said the government prefers a joint venture. Pakistan would contribute the land, while a partner would bring in the investment. Alternatively, the government may keep the hotel if it proves economically viable. He added clarity will come after selecting a joint venture partner and market analysis in the next few months.

This initiative is part of Prime Minister Shehbaz Sharif’s broader plan to restructure or sell state-owned assets. It fulfills key conditions of a $7 billion loan agreement with the IMF. Pakistan International Airlines (PIA) might be the first asset to be privatized, with hopes of completing the sale by November. Ali mentioned several large Pakistani business groups are interested and capable of managing PIA.

The adviser also estimated PIA would need about $500 million in investments to regain profitability. Pakistan is currently appointing advisers for the hotel’s redevelopment or sale. Bloomberg reported that the government expects to finalize a new adviser after reviewing bids from seven firms, including Citigroup, CBRE, and Savills.

Overall, Pakistan is moving swiftly to meet IMF conditions through asset sales and restructuring. The Roosevelt Hotel redevelopment could symbolize a new chapter in Pakistan’s economic reforms. Meanwhile, the PIA privatization signals a major shift in managing state-owned enterprises. The government is focused on generating funds and stabilizing its economy through these measures.