By Staff Reporter
KARACHI: Pakistan is targeting a valuation of at least $1 billion for the Roosevelt Hotel it owns in New York and is prepared to sell a minority stake in the prime Manhattan property as it searches for a redevelopment partner, Reuters reported, citing a senior Pakistani official.
The move is part of a broader $7 billion IMF-backed privatization effort as the cash-strapped nation looks to unlock value from its overseas assets.
The Roosevelt Hotel, named after former US President Theodore Roosevelt, is a century-old property in midtown Manhattan, widely regarded as one of Pakistan’s most valuable foreign holdings since its acquisition in 2000.
The over 1,000-room hotel, however, has struggled financially, leading to its closure in 2020 amid mounting losses. It briefly served as a migrant shelter before shutting its doors entirely.
On Tuesday, Pakistan’s government approved a “transaction structure for the Roosevelt Hotel,” opting for a joint venture model over an outright sale to maximize long-term value, according to the official, who spoke on condition of anonymity due to the confidentiality of the process.
The government plans to retain ownership through an equity partnership, though it has not specified the size of the stake it’s willing to offer. “It is among the best pieces of land in NY real estate,” the official said. “The process begins immediately and is expected to be completed in the next six-nine months.”
The government has tapped Jones Lang LaSalle (JLL) to oversee the transaction, aiming for a valuation exceeding $1 billion for the 42,000-square-foot property, which could be redeveloped for residential and office use.
The hotel’s location, near marquee New York landmarks like Grand Central Terminal, Times Square, and Fifth Avenue, places it in one of Manhattan’s most sought-after commercial zones, adding to its appeal for potential partners.
Neither the Privatisation Ministry nor Pakistan International Airlines (PIA), the state-owned carrier that holds the hotel through its investment arm, responded to requests for comment. JLL also declined to comment.
In a related development, Pakistan this week greenlit four parties to bid for a stake in debt-laden PIA, signaling a stepped-up push to offload loss-making state assets under IMF pressure. The Roosevelt Hotel transaction marks another key step in that effort, balancing the government’s need for capital with its desire to retain control over a prized property.
The process now hinges on finding a partner willing to meet Pakistan’s ambitious valuation target, a figure that reflects both the hotel’s prime real estate and its potential for transformation in one of the world’s most competitive property markets.
Copyright © 2021 Independent Pakistan | All rights reserved
