Why Pakistan Wants A Billion Dollars For Roosevelt Hotel In New York, Once Its Most Valuable Foreign Address

Pakistan is eyeing a valuation of at least $1 billion for the Roosevelt Hotel in New York, one of the country's most prized overseas assets, as it looks to rope in a redevelopment partner rather than sell the property outright.

According to Reuters, Islamabad is willing to part with a minority stake in the prime Midtown Manhattan site under a joint venture model, as part of its $7 billion IMF-backed privatisation push.

A senior Pakistani government official told the news agency that the century-old property is among the most valuable pieces of foreign real estate owned by the country and interest from global developers is "extremely high".

The official, who declined to be named because the process is confidential, said the government hopes the redevelopment will unlock a valuation well north of $1 billion, with the project expected to take four to five years. Pakistan is also expecting an initial payment of $100 million by June 2026, Reuters reported.

So why is Pakistan putting such a high price tag on a hotel that has been closed for years? To understand that, you need to look at what the Roosevelt once was and what it still represents.

A Grand Address In The Heart Of New York

The Roosevelt Hotel sits at 45 East 45th Street, right at the corner of Madison Avenue, a short walk from Grand Central Terminal, Fifth Avenue and Times Square. In New York real estate terms, it doesn't get much better.

Opened in 1924, the Beaux-Arts-style hotel was designed by George B Post & Son and built ingeniously over the active railway tracks leading into Grand Central. At the time, it was a symbol of modern luxury, boasting over 1,000 rooms, royal suites, a presidential suite with a terrace, and amenities that were ahead of their time, including childcare services and an in-house doctor.

The Roosevelt Hotel sits at 45 East 45th Street, right at the corner of Madison Avenue. Photo: The Roosevelt Hotel

By the 1940s, the Roosevelt had become a flagship property under Conrad Hilton, who famously lived in the hotel's presidential suite. It later made hospitality history by becoming the first hotel in the world to offer televisions in every guest room.

How Pakistan Ended Up Owning A New York Landmark

Pakistan's connection to the Roosevelt began in the late 1970s, long before the country's current economic troubles.

In 1978, real estate investor Paul Milstein leased the hotel to PIA Investments Ltd, the investment arm of Pakistan International Airlines, with an option to buy the property later at a fixed price. The deal also involved Saudi royal Prince Faisal bin Khalid bin Abdulaziz Al Saud as a partner.

Initially, the investment struggled. The hotel was ageing, maintenance costs were high, and the property ran into losses. But after renovations, the numbers began to improve.

In 1998, PIA exercised its option to buy the Roosevelt for about $36.5 million, a figure that later proved to be astonishingly low for such a prime Manhattan address. After a prolonged legal battle with the Milstein family, PIA fully acquired the hotel by 2000.

What Pakistan had secured was a rare thing: a blue-chip New York asset bought cheap, with massive long-term upside.

From Profit Engine To Pandemic Casualty

For years, the Roosevelt functioned as a busy four-star hotel catering to business travellers and tourists including musicians like Guy Lombardo and his Royal Canadians, who performed there for over 30 years and turned the hotel into a New Year's Eve tradition, as well as bands such as Lawrence Welk's orchestra and Pakistan's Junoon in the 1990s.

Politicians like New York Governor Thomas E. Dewey used the hotel as an election-night headquarters, while film and TV stars including Michael Douglas, Al Pacino, and Jennifer Lopez appeared on-site for movies like Wall Street, The French Connection, and Maid in Manhattan, and the hotel also featured in the series Mad Men.

For years, the Roosevelt functioned as a busy four-star hotel. Photo: The Roosevelt Hotel

Over its long history the Roosevelt became a favourite of aristocrats, socialites, business magnates, and cultural figures, earning its reputation as the "Grand Dame of Madison Avenue" and a glamorous hub for high-society events, galas, and New Year's celebrations in Midtown Manhattan.

That changed in 2020, when the Covid-19 pandemic decimated global travel. Facing mounting losses, the hotel shut its doors to regular guests at the end of the year.

The building later found a temporary, controversial new role. Between 2021 and 2023, New York City leased the Roosevelt as a migrant shelter, housing thousands of asylum seekers. The arrangement brought in short-term revenue but also political scrutiny and public debate in the city.

By early 2026, shelter operations had wound down, and the building returned to PIA's control, vacant and awaiting its next chapter.

Why Pakistan Doesn't Want To Reopen It As A Hotel

Keeping the Roosevelt as a traditional hotel no longer makes financial sense.

The structure is nearly a century old, expensive to maintain, and poorly suited to compete with newer luxury properties in Manhattan. As Reuters noted, the over 1,000-room hotel had been struggling even before the pandemic.

Instead, Pakistan sees far greater value in the land itself.

Under the current plan, the government wants to redevelop the 42,000-square-foot site into a 50 to 60-storey mixed-use tower, likely combining office and residential spaces. This approach could attract $3 to $4 billion in total investment, while allowing Pakistan to retain an equity stake rather than exit completely.

Keeping the Roosevelt as a traditional hotel no longer makes financial sense. Photo: The Roosevelt Hotel

"It is among the best pieces of land in NY real estate," the senior official told Reuters, adding that the redevelopment process would begin immediately and conclude within six to nine months.

The IMF Factor

The Roosevelt's redevelopment is not happening in isolation.

Pakistan is grappling with low foreign exchange reserves, high external debt, and IMF-mandated austerity measures. Monetising high-value state assets abroad has become a key strategy to shore up finances without triggering domestic political backlash.

As part of the IMF-backed privatisation programme, the government has approved a transaction structure for the Roosevelt that rules out an outright sale. According to Reuters, the state will remain involved through an equity partnership, though the size of the stake on offer has not been disclosed.

Jones Lang LaSalle (JLL) has been appointed to run the process, and interest from global investors is said to be strong.

Why The Billion-Dollar Valuation

At first glance, a $1 billion valuation for a closed hotel may seem ambitious. But in Manhattan real estate, location trumps everything.

The Roosevelt sits in one of the most valuable commercial zones in the world, surrounded by transport hubs, office towers, retail corridors and tourist landmarks. Redeveloped at modern density levels, the site's potential far exceeds what the old hotel structure could ever deliver.

For Pakistan, the Roosevelt is no longer about nostalgia or hospitality. It is about unlocking maximum value from a rare overseas asset at a time when every dollar of foreign exchange matters.