The Media Line: Pakistan, US Launch Partnership To Redevelop Roosevelt Hotel in New York  

Pakistan, US Launch Partnership To Redevelop Roosevelt Hotel in New York  

By Arshad Mehmood/The Media Line  

Pakistan and the United States have formally launched a strategic economic partnership to redevelop the Roosevelt Hotel in New York, the Finance Division announced Thursday.  

The initiative includes collaboration with the US General Services Administration (GSA) regarding the operation, maintenance, renovation and redevelopment of the Roosevelt Hotel in New York, the Finance Division said.  

To advance this partnership, both governments have signed a memorandum of understanding (MoU) formalizing their cooperation.  

The MoU was executed by GSA Administrator Edward C. Forst on behalf of the United States and Federal Minister for Finance and Revenue Sen. Muhammad Aurangzeb on behalf of Pakistan and was witnessed by Prime Minister Shehbaz Sharif and United States special envoy Steve Witkoff.  

It establishes a clear, time-limited framework for joint assessment of the technical, commercial, and economic terms of cooperation, aimed at ensuring transparency, structured decision-making, and concrete outcomes.   

Because of the Roosevelt Hotel’s prime Manhattan location and the complexity of New York’s zoning and municipal approval processes, coordination among institutions is intended to reduce execution risk, clarify regulatory requirements, and protect the value of the transaction.   

Pakistan International Airlines (PIA) acquired the hotel in 2000 alongside Saudi Prince Faisal bin Khalid Al Saud, decades after the Midtown Manhattan landmark opened in 1924.  

The airline later bought out the prince’s stake, securing full ownership of what remains one of its most valuable overseas assets.  

The property has been leased at various points, most recently to New York City, which used it as a migrant shelter.  

However, in February 2025, the city terminated its $220 million lease agreement, delivering a significant financial setback to the airline.  

For Pakistan, the abrupt termination of the agreement raises concerns, particularly regarding PIA’s anticipated revenue. The $220 million lease was a crucial financial lifeline for the struggling national airline.  

The deal provided critical revenue support to the cash-strapped carrier.  

Islamabad is now seeking to unlock the property’s full commercial value as part of its broader privatization drive, launched in response to a deepening financial crisis that has forced the government to restructure and privatize its national flag carrier.  

The objective remains to secure maximum value for this property in alignment with the government’s privatization strategy while strengthening Pakistan-United States economic ties.