Pakistan is exploring a range of possibilities to make best use of its iconic Roosevelt Hotel in midtown Manhattan including a proposal to demolish the building to make way for a new skyscraper, officials confirmed.
The move is part of Islamabad’s broader strategy to fulfill commitments made to the International Monetary Fund (IMF) under a $7 billion loan agreement, according to Bloomberg which broke the news.
In July, Views News Now reported that Pakistani officials Islamabad had decided to sell a minority stake in Roosevelt Hotel in Manhattan and is looking for a valuation of at least $1 billion for one of New York City’s iconic properties.
Islamabad acquired the hotel in 2000, which is considered one of its prized overseas national assets.
Pakistan to sell minority stake in iconic Roosevelt Hotel; targets $1 billion valuation
As part of its $7 billion IMF-backed privatization drive, the Cabinet Committee on Privatization approved the transaction structure for the Roosevelt Hotel.
The decision has been taken in step with proposal made by the South Asian country’s Privatization Commission Board, officials said.
Owned by Pakistan International Airlines (PIA), the 1,025-room hotel was shuttered in 2020 after suffering severe financial losses due to the COVID-19 pandemic.
It briefly reopened in 2023 to accommodate migrants but has since remained closed.
Once seen as a symbol of Pakistani presence in the U.S., the hotel—opened in 1924 and located adjacent to Grand Central Terminal—has even been dubbed by some as “the new Ellis Island” for its brief role in housing migrants.
Citigroup is among seven international consortia that have submitted bids to advise Pakistan on the privatization of Roosevelt Hotel in New York, a privatization commission official told Arab News on Thursday. https://t.co/b6EmdXd7um
— Arab News Pakistan (@arabnewspk) September 18, 2025
Muhammad Ali, the Pakistani prime minister’s adviser on privatization, told Bloomberg earlier that the government is considering multiple options.
The leading proposal involves a joint venture in which Pakistan would provide the land, and a private partner would contribute the capital to redevelop the site.
“We will have clarity on this in the next few months after finalization of the joint venture partner and market sounding,” Ali said, according to the news service.
He added that retaining the hotel remains on the table if it proves economically viable.
Pakistan has already begun the process of appointing advisers for the Roosevelt Hotel transaction. A
Seven firms—including Citigroup Inc., CBRE Group Inc., and Savills PLC—have submitted bids, with a final selection expected later this month.
This initiative is part of the Pakistani government’s most ambitious push in years to reform or privatize loss-making state-owned enterprises.
PIA itself is likely to be the first major asset sold, possibly by November.
According to adviser Muhammad Ali, the prospective buyers include some of Pakistan’s largest business groups, and he estimates around $500 million will be required to make the airline viable again.
Located in the heart of Manhattan, the shimmering hotel has been a historic place for the Pakistani Americans as it has hosted several Pakistani leaders and remained a symbol of pride.
The classical structure of the hotel and its fame in the early part of the last century made it a charming destination for tourists.
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Kiran Asim is a writer who covers the U.S., Europe, South Asia, and the Middle East. Her reports and analyses look at the geostrategic issues and contemporary developments and their economic and political implications. She also writes about society and education.
