The New York City government has terminated its $220 million lease agreement with Pakistan International Airlines (PIA) for the Roosevelt Hotel, following criticism over the use of taxpayer money to house asylum seekers. The decision was announced by New York City Mayor on Monday, citing cost-saving measures and the city’s successful emergency response as reasons for the closure.
The Roosevelt Hotel, which reopened in 2023 as a shelter, provided housing for tens of thousands of migrants in its 1,025 rooms at an estimated cost of $200 per night. The hotel also served as a key processing center, handling 75% of migrant arrivals before being repurposed. However, the city has seen a sharp decline in migrant arrivals, dropping from 4,000 per week in 2023 to approximately 350 per week now.
The Roosevelt Hotel has been owned by PIA since 2000. In February 2024, Pakistan’s caretaker government signed an agreement with a US consortium for a joint venture as part of PIA’s ongoing privatization process. Later, in August 2024, Pakistan’s Privatisation Commission recommended a joint venture transaction structure for the hotel’s redevelopment.
