Pakistan Seeks $1 Billion Valuation for Roosevelt Hotel, Eyes Joint Venture

Pakistan is aiming for a valuation of at least $1 billion for the Roosevelt Hotel in New York City. A senior government official stated that the nation is prepared to relinquish a minority stake in the prominent Manhattan property while seeking a partner for redevelopment.

The Roosevelt Hotel, named in honor of former U.S. President Theodore Roosevelt, is a century-old establishment in Midtown Manhattan considered one of Pakistan’s most valuable international assets, acquired in 2000.

The hotel, featuring more than 1,000 rooms, ceased operations in 2020 due to increasing financial losses and briefly functioned as a shelter for migrants.

As part of the government’s $7 billion privatization initiative supported by the IMF, the administration sanctioned a “transaction structure for the Roosevelt Hotel” this past Tuesday. Instead of an outright sale, a joint venture approach has been chosen to optimize long-term value.

Further specifics were not provided.

Government to Retain Ownership

According to the senior official, the government intends to maintain ownership through an equity partnership. However, the specific stake offered to a potential JV partner was not disclosed.

The official requested anonymity as the matter is confidential.

Jones Lang LaSalle (JLL) will oversee the process. The government anticipates a valuation exceeding $1 billion for the 42,000 square foot property, with intentions to redevelop it for mixed residential and office purposes, according to the official.

The official added that this is prime real estate in New York, and the process is commencing immediately with completion expected within six to nine months.

Requests for comments from Pakistan’s Privatisation Ministry, state-owned Pakistan International Airlines (PIA), which owns the hotel through its investment division, and JLL went unanswered.

This week, Pakistan also approved four entities to bid for a stake in the financially strained PIA.

The hotel’s location is near notable New York landmarks, including Grand Central Terminal, Times Square, and Fifth Avenue, positioning it in one of Manhattan’s most lucrative commercial areas.

The government anticipates the redevelopment phase to span four to five years, with the official noting significant interest.

Last June, officials projected an initial payment of $100 million from the joint venture partnership by June 2026.