ISLAMABAD/NEW YORK: Under the new economic reform and privatization agenda, the Cabinet Committee on Privatization (CCOP) has approved the transaction structure for the Roosevelt Hotel in New York, opting for a joint venture model aimed at maximizing long-term value and minimizing fiscal risk.
The Roosevelt Hotel, owned by Pakistan International Airlines (PIA), has been incurring heavy monthly losses reportedly amounting to Rs 900 billion. HUM News has learnt that, due to this unsustainable financial burden, the Privatisation Commission Board had presented three options for the future of the iconic Manhattan property: (i) an outright sale, (ii) a joint venture with multiple investment avenues, and (iii) a long-term lease agreement.
Following extensive analysis by the appointed financial advisor, the joint venture model was selected and approved by the CCOP. This approach allows the government to maintain a stake in the asset while partnering with private entities to revitalise operations and ensure a steady revenue stream. Officials say the model offers flexibility, several exit routes, and significantly reduces future fiscal exposure for the national exchequer.
The Privatisation Commission will now present the transaction structure to relevant stakeholders in an upcoming meeting. A final decision on the operational specifics and partner selection is expected within the next three months. The timeline and expected revenue from the transaction will be determined at a later stage.
Sources within the Ministry of Privatisation said the move represents a “milestone” in Pakistan’s privatization journey and reflects the government’s firm commitment to conducting economic reforms in a “transparent, market-driven, and investor-friendly manner.”
The Roosevelt Hotel, located in midtown Manhattan, has long been a strategic asset for Pakistan, but years of underutilization and mounting operational costs have made privatization a necessity.
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