Why Pakistan Will Not Sell The Roosevelt Hotel In New York To JPMorgan

Pakistan has blocked a proposed deal with banking giant JPMorgan Chase for the purchase of the historic Roosevelt Hotel in New York City, ending more than a year of discussions over the prime Manhattan property.

The American bank had been pursuing the site as part of its expansion plans near its new headquarters tower on Park Avenue. However, Islamabad ultimately rejected the proposal, opting instead to redevelop the property through a joint venture that would allow Pakistan to retain ownership while unlocking its long-term value.

According to reports cited by Moneycontrol, the government believes the Midtown Manhattan property could attract more than $1 billion in private investment if redeveloped into a modern high-rise complex. Officials are also expecting an upfront payment of about $100 million as part of the proposed redevelopment plan.

The decision reflects a broader strategy by Pakistan to monetise valuable overseas assets while still maintaining ownership stakes, particularly as the country continues to navigate financial pressures and debt obligations.

The Roosevelt Hotel And Why It Matters To Pakistan

The Roosevelt Hotel occupies one of the most valuable pieces of real estate in Manhattan. Located just a short walk from Grand Central Terminal, the property sits in the heart of Midtown, an area that has increasingly become a hub for luxury developments and major corporate headquarters.

Opened in 1924 and named after former US president Theodore Roosevelt, the hotel operated for decades as one of New York's well-known hospitality landmarks.

A Google search of the Roosevelt Hotel shows 'permanently closed'.

Pakistan's connection to the property dates back to 1979, when the national carrier Pakistan International Airlines (PIA) first leased the hotel. The airline later purchased the property outright, making it one of Pakistan's most prominent assets abroad.

For decades, the hotel served as a functioning hospitality venue. However, the building shut down in 2020 after pandemic-related losses made continued operations financially unsustainable.

In the years that followed, the property was leased by the New York City administration and used as a migrant reception and shelter centre. While this arrangement provided temporary revenue, it also accelerated the deterioration of the ageing structure, which now requires extensive renovation or complete redevelopment.

Despite the building's condition, the land remains exceptionally valuable. Pakistani officials estimate the property could be worth more than $1 billion, making it one of the country's most significant overseas assets.

Why The Property Has Become Financially Important For Islamabad

Pakistan's determination to extract maximum value from the Roosevelt Hotel is closely linked to the country's broader economic challenges.

• Public debt has climbed to roughly Rs 80.5 trillion, or about $288 billion, pushing Pakistan's debt to GDP ratio close to 71 percent. Interest payments now consume a large share of government revenues, leaving little fiscal space for new investment or spending.
• Foreign exchange reserves are also under pressure. Officials estimate reserves at around $16.2 billion, which covers only a few months of imports. Meanwhile, the country's external financing requirements for the coming fiscal year could reach between $19.4 billion and $25 billion.
• Pakistan is currently implementing reforms tied to a $7 billion programme with the International Monetary Fund, which includes conditions such as tax increases and higher electricity tariffs.

Against this backdrop, monetising overseas assets has emerged as an important strategy. The Roosevelt Hotel stands out because of both its location and redevelopment potential.

Officials have described the project as part of a broader privatisation strategy. As quoted by Moneycontrol, Pakistan's finance division said, "The objective remains to secure maximum value for this property in alignment with the government's privatisation strategy while strengthening Pakistan-United States economic ties."

How The Hotel Is Linked To The National Airline's Financial Troubles

The Roosevelt property is also tied to the financial problems surrounding Pakistan International Airlines.

Over the years, liabilities associated with the airline ballooned to hundreds of billions of rupees. The Pakistani government eventually absorbed more than Rs 600 billion in debt linked to the carrier as part of efforts to restructure and privatise the airline.

In December, a 75 percent stake in the airline was sold, but Pakistan retained ownership of several assets previously held by PIA, including the Roosevelt Hotel.

Officials believe redeveloping the Manhattan property could generate substantial long-term revenue that may help offset the financial burden associated with the airline's historic debts.

Why The JPMorgan Deal Collapsed

For JPMorgan Chase, the property was strategically important because of its proximity to the bank's expanding Manhattan campus.

The bank recently completed its new headquarters tower at 270 Park Avenue, and the Roosevelt site sits directly next to the cluster of buildings that form its growing corporate footprint.

The bank had reportedly been exploring a 99-year ground lease for the site, which would have allowed it to incorporate the land into a major corporate campus. In fact, the bank had already provided a $105 million loan against the property in 2018.

According to people familiar with the negotiations quoted by Moneycontrol, "JPM was aggressively chasing the Roosevelt hotel."

The future of the Roosevelt Hotel has also taken on a diplomatic dimension. Photo: Instagram

However, Pakistan's government rejected the idea of an outright sale. Officials argued that redevelopment through a joint venture would allow the country to capture far greater value over time.

Muhammad Ali, chair of Pakistan's privatisation commission, said, "We are not engaged in discussions with any entity about sale of Roosevelt property and discussions on the joint venture will begin in March after appointment of our new financial adviser."

Another government adviser, Khurram Schehzad, also confirmed that Pakistan has "no plans to sell it outright," emphasising that the decision aligns with cabinet policy.

Diplomatic And Strategic Considerations

The future of the Roosevelt Hotel has also taken on a diplomatic dimension.

Pakistan recently announced a cooperation framework with the US General Services Administration aimed at supporting the hotel's upkeep, refurbishment and redevelopment.

The agreement was negotiated by US special envoy Steve Witkoff and officials from both governments. Islamabad described the arrangement as a "strategic economic initiative" intended to help navigate the regulatory complexities involved in redeveloping a major Manhattan property.

Still, the agreement does not include firm funding commitments or clear timelines, raising questions about how quickly redevelopment might actually move forward.

A High-Stakes Asset For Pakistan

For Pakistan, the Roosevelt Hotel represents more than just an ageing building in New York.

Selling the property outright could provide immediate financial relief. However, officials fear that such a move might undervalue one of the most valuable real estate holdings the country owns abroad.

Redevelopment, on the other hand, offers the possibility of far greater long-term returns. But it also requires large-scale investment, technical expertise and time.

With negotiations for a joint venture expected to begin in March 2026, the future of the Roosevelt Hotel remains uncertain. What is clear, however, is that the Manhattan property has become a symbol of Pakistan's attempt to turn a historic overseas asset into a financial lifeline during a period of economic strain.