The Pakistani government is once again causing issues for New York City taxpayers.
Having spent $146.6 million to convert the Roosevelt Hotel into an immigrant shelter over the past two years, the Pakistani-owned property is now leaving the city with $13.6 million in unpaid property taxes and almost $1 million in overdue water bills.
Even worse, a potential deal with the federal government to turn the Midtown landmark into a skyscraper might let Pakistan evade all future taxes—possibly costing the city tens of millions annually.
The hotel, located at 45 East 45th Street, was already $11.6 million in debt and entered a payment agreement with the city’s Treasury Department in September 2023. However, Pakistan missed a $573,361 payment due on January 2 and has also neglected six monthly payments totaling $3.9 million, despite substantial taxpayer funding to shelter migrants.
“This facility is currently in arrears on its payment plan,” a spokesperson from the Department of Finance confirmed.
The hotel’s annual property tax bill is set to hit $7.7 million in July.
A joint venture between Pakistan and the U.S. for the demolition of President Roosevelt’s mansion to construct an office tower could lead to a federal tax exemption, as the State Department typically seeks these exemptions from the Defense Department for foreign governmental real estate purchases.
“We have not yet received any letter regarding this matter,” mentioned a DOF spokesperson, adding, “However, you will still have to pay any fees incurred before the government took ownership.”
Since 2022, the Roosevelt has been a primary reception center for migrants, processing over 173,000 of the 232,000 asylum seekers, often hosting around 2,600 individuals nightly from May 2023 to June 2025 under a $220 million contract at roughly $202 per room each night.
What was intended as a refuge for asylum seekers has transformed into something quite different. With hotels at capacity, many migrants have taken to sleeping in retail spots or even outside.
According to Homeland Security officials, the Roosevelt served as a base for the Venezuelan street gang, Torren de Aragua, known for organizing moped robberies from hotel premises.
Jose Ibarra, another Venezuelan migrant at the Roosevelt, left the hotel in September 2023 and was arrested for the murder of Laken Riley, a nursing student at the University of Georgia, less than six months later. He is now serving a life sentence without the possibility of parole.
The city remains locked in dispute with the Trump administration over $80.5 million in FEMA reimbursements from a date in February 2025.
In the meantime, Pakistan is keen to sell the Roosevelt aircraft, owned by state-run Pakistan International Airlines since 1999. They enlisted the real estate firm JLL in late 2023 to invite bids, expected to surpass $1 billion. However, JLL withdrew from the project, citing conflict of interest concerns.
While a potential collaboration with the U.S. government is still in its infancy, only a memorandum of understanding has been signed so far.
The Pakistani embassy, GSA, the city’s Department of Environmental Protection, and the mayor’s office have not responded to comments on the situation.
