Pakistan-owned Roosevelt Hotel shut since 2020, key to IMF-backed asset plan worth over $1b
A view of The Roosevelt Hotel in midtown Manhattan in New York City, US, February 24, 2025.PHOTO: REUTERS
Pakistan has signed a deal with the US government to jointly redevelop New York’s Roosevelt Hotel, according to documents seen by Reuters and two sources, allowing Islamabad to unlock the value of one of its most prized overseas investments.
The century-old hotel, owned by Pakistan’s International Airline, has been closed since 2020 and is central to Islamabad’s IMF-backed asset restructuring, which the government has previously estimated could be worth more than $1 billion.
The two countries signed the memorandum on Thursday after Prime Minister Shehbaz Sharif’s cabinet approved the process, two sources with knowledge of the matter told Reuters. They were not authorised to speak publicly on the matter.
Deepening economic ties
Reuters saw a document showing a cabinet summary stating that the prime minister cleared the proposal by authorising the Ministry of Defence to sign the non-binding memorandum with the US General Services Administration (GSA), as part of efforts to enhance bilateral and commercial relations.
Pakistan’s defence and privatisation ministries did not respond to a request for comment. The White House and the US Embassy in Islamabad also did not immediately respond to requests for comment.
The agreement comes as Pakistan deepens economic engagement with Washington, including US financing support for the Reko Diq copper and gold mining project in Pakistan’s Balochistan province, partly owned by Barrick Gold.
Read More: SBP flags delay in Roosevelt loan
PM Shehbaz is currently in Washington to attend the inaugural Board of Peace meeting.
The memorandum, seen by Reuters, says the project “shall be facilitated by the United States General Services Administration and by the Pakistan Ministry of Defence”, and will cover the “renovation, operation, maintenance, and redevelopment” of the property near Grand Central Terminal. It does not specify financial terms.
The US General Services Administration primarily manages federal property and procurement for US government agencies, and its publicly stated mandate does not typically include commercial redevelopment of foreign state-owned assets. It was not immediately clear under what authority the agency would facilitate the project.
