Pakistan has completed the baseline valuation of the Roosevelt Hotel in New York and is set to proceed with a transaction structure this month to privatize the high-profile, state-owned asset, the head of the Privatization Commission said this week.
The 1,015-room Roosevelt Hotel, located in Midtown Manhattan, has long been one of Pakistan’s most iconic yet politically sensitive overseas holdings. Acquired in 1979 by Pakistan International Airlines Investment Limited (PIAIL), the hotel spans an entire city block on Madison Avenue and 45th Street. Despite multiple attempts over the past two decades to sell, lease, or redevelop the property, no plan has progressed beyond initial stages.
The Roosevelt ceased operations in 2020 due to heavy financial losses during the COVID-19 pandemic. In 2023, Pakistan signed a short-term lease with the City of New York to use the hotel as a temporary shelter for asylum seekers, generating over $220 million in projected rental income. That agreement ended in 2024, and no new revenue stream has since been announced.
“We now have a valuation of the Roosevelt,” said Muhammad Ali, chairman of Pakistan’s Privatization Commission. “We appointed JLL [Jones Lang LaSalle], one of the top U.S. consultants, to carry out the assessment. They’ve completed their market analysis and we’re awaiting final approval from the Cabinet Committee on Privatization to move forward with the chosen structure.”
Ali expressed optimism that a transaction could be executed before the end of June.
While Ali did not disclose the hotel’s liabilities or cumulative losses, the Roosevelt is among several state-owned assets the government aims to privatize in FY2025 to meet a revenue target of Rs86 billion ($306 million). Other assets on the list include Pakistan International Airlines and three power distribution companies.
According to Ali, the hotel’s market value will depend heavily on the type of transaction structure adopted.
A direct “as-is” sale, without securing new zoning or development approvals, would fetch the lowest price. However, if the government first obtains the necessary permits to facilitate redevelopment, the property’s value could potentially double.
A more lucrative option would be forming a joint venture with a private investor, where risks and future profits are shared. Under this model, the hotel’s value could rise to four to five times its as-is price.
“The final structure will determine the proceeds,” Ali explained. “If we pursue a joint venture, the government will only receive an initial advance payment this year, with the bulk of the returns coming later.”
