Privatisation Commission Denies Setting Base Price for Roosevelt Hotel Sale

The Privatisation Commission of Pakistan issued a statement on Saturday clarifying that claims of a $100 million base price for the Roosevelt Hotel in New York are inaccurate. The commission refuted media reports suggesting that such a valuation had been established for the prospective sale.

The commission stated, “A misleading news report appearing on 27th June 2025 in certain news outlets asserted that Pakistan has set $100 million as the base price for the sale of the Roosevelt Hotel. It is clarified that no base price has been determined for the Roosevelt Hotel, New York’s privatisation, which can only be set at the time of bidding.”

The commission also noted that the reports incorrectly quoted Muhammad Ali, the Adviser to the Prime Minister on Privatisation. Mr. Ali had mentioned an anticipated initial partial payment from the winning bidder upon signing the agreement, which is expected during the current fiscal year.

According to the commission, “The base price and timing for realisation of total proceeds from the privatisation of Roosevelt Hotel will be based on transaction structure and final terms of the agreement approved by the government.” The finalization of the transaction structure is anticipated to be discussed in the upcoming meeting of the Cabinet Committee on Privatisation (CCoP).

Last month, Defence Minister Khawaja Asif addressed the National Assembly, indicating that the government is considering a joint venture for the Roosevelt Hotel to secure long-term economic advantages rather than an outright sale.

Describing the historic 19-story hotel as a “strategic gem,” Asif highlighted its advantageous location in Manhattan and emphasized the government’s intention to maintain ownership.

He stated, “Selling might address a short-term fiscal need, but a joint venture would allow Pakistan to retain a stake in this valuable property while generating consistent revenue.”

The Roosevelt Hotel has been regarded as a significant overseas asset for Pakistan, with recurring proposals to sell it for immediate financial gain.

The landmark hotel ceased operations in 2020 due to considerable financial losses resulting from the COVID-19 pandemic.

In 2023, it was repurposed as a shelter for asylum seekers after the Pakistani government finalized a three-year, $220 million lease agreement with the New York City government to operate the hotel.

In February 2024, a Financial Advisory Services Agreement (FASA) was signed with a consortium led by Jones Lang LaSalle Americas Inc (JLL) to facilitate the joint venture development of the Roosevelt Hotel.

Reports from November 2024 indicated that Qatar had explored potential collaboration with Pakistan in managing the Roosevelt Hotel.

The hotel, inaugurated in 1924, is named in honor of President Theodore Roosevelt and is situated adjacent to Grand Central Terminal, New York City’s main railway terminal.