Setback for Pakistan’s Roosevelt Hotel Privatization as Adviser Withdraws
New York / Islamabad – August 2025 — The long-awaited privatization of Pakistan’s Roosevelt Hotel in New York has hit a major roadblock. The global real estate firm that was serving as the financial adviser (FA) has officially stepped down, causing serious concerns about the future of the deal.
The unexpected exit of the financial adviser is likely to delay the privatization process by at least 18 months, leading to projected losses of over $50 million to Pakistan’s national exchequer in debt servicing and maintenance costs. The iconic hotel, located in midtown Manhattan, continues to remain underutilized, further adding to the financial burden.
Background and Financial Burden
The Roosevelt Hotel, owned by Pakistan International Airlines (PIA), has been a subject of privatization discussions for years. In 2020, the property was used to secure a $142 million loan from an international financial institution. With no active financial adviser in place, the debt servicing continues, putting strain on government resources.
According to reports, until a new financial adviser is appointed and the due diligence process is completed, privatization efforts will remain on hold. Despite the urgency of the matter, the Privatization Commission has not yet started the process of selecting a new adviser.
Expert Opinion: A Prime Asset at Risk
Fawad Hassan Fawad, former caretaker Minister for Privatization, emphasized the significance of the Roosevelt Hotel as a valuable real estate asset in New York City. He stated that any decision regarding its future must be guided by professionalism, strategic planning, and transparency.
He also highlighted that a development plan had previously been explored, which involved constructing up to 1.6 million square feet on the hotel’s prime site—offering immense potential for revenue generation.
What’s Next?
As Pakistan navigates this setback, the focus now shifts to finding a new, qualified financial adviser who can move the project forward efficiently. Until then, costs will continue to mount, and valuable time will be lost in monetizing one of Pakistan’s most strategically located international assets.
Stay connected for further updates on the Roosevelt Hotel’s future and developments in Pakistan’s privatization initiatives.
