Concerns Surround the Future of the Roosevelt Hotel
On February 17, just before news emerged about a supposed “agreement” between the U.S. General Services Administration (GSA) and the Pakistani government to redevelop the Roosevelt Hotel, Mohammad Ali, an adviser to Prime Minister Shehbaz Sharif, shared insights with AAJ, a Pakistani news channel.
He mentioned that the Roosevelt would be “privatized through a joint venture and redevelopment model rather than a direct sale.” The proposed plan involves Pakistan donating the land, while a private partner would invest approximately $1 billion into constructing a new skyscraper to replace the vacant, century-old hotel that Pakistan International Airlines (PIA) effectively owns.
This concept, though, has only been around for about five years. And how can the GSA, which typically manages federal buildings, play a role in Pakistan’s ambitious plan to profit from the Roosevelt, especially when the country owes $7 billion to the International Monetary Fund?
Questions regarding the Roosevelt, located on Madison Avenue between East 44th and 45th Streets, have left real estate experts puzzled.
When the announcement was made, it seemed to catch Washington off guard. The White House redirected questions to the GSA, which offered no clear answers about what it could provide that various financial institutions and advisors couldn’t.
GSA Administrator Edward C. Forst stated, “This agreement exemplifies the Trump Administration’s dedication to foreign affairs and our nation’s economic prosperity. GSA looks forward to working with the Government of Pakistan on this project.”
Amid the confusion, GSA officials explained that the Memorandum of Understanding was simply a structured framework for jointly assessing the technical, commercial, and economic aspects of collaboration, reflecting a commitment to transparent and mutually beneficial progress.
Considering its prime location, the future of the Roosevelt site appears ambiguous, particularly within the complex regulatory environment of New York.
Since the Roosevelt Hotel closed in 2020 due to the pandemic, its owners in Pakistan have led many to speculate about its fate.
Back in February 2024, it was reported that PIA had engaged brokerage firm JLL to market the Roosevelt site to potential developers and investors.
By April 2025, while the hotel was still occupied by migrants, Bloomberg noted that Burkan World Investments had approached the Pakistani government to propose a joint venture for redeveloping the site, with a plan for PIA to keep a 50% stake.
However, Realty Check later indicated that the investment firm failed to consult anyone from PIA before presenting the idea, and it only reached out to the state privatization commission, with no significant developments following.
Meanwhile, it appeared that firms like Tishman Speyer and SL Green showed interest, but JLL and PIA parted ways last summer under unclear circumstances.
Contrarily, some sources in Pakistan have claimed that The Roosevelt is set to be renovated and reopened as a hotel, yet insiders expressed skepticism, stating that it would take at least a year before the hotel could be ready for guests.
In November, Saudi Arabia’s Arab News reported that PIA was “considering proposals from seven potential groups” for advising on the hotel. Notably, JLL wasn’t involved, and it seemed likely that a consortium led by Morgan Stanley, including CBRE, would be chosen.
Yet, nothing materialized from that discussion, either.
Recently, vague announcements about collaboration between the U.S. and Pakistan surfaced, with President Trump’s envoy Stephen Witkoff, a seasoned figure in New York real estate, reportedly facilitating the arrangement.
Do we somehow need to take it all with a grain of salt?
