Pakistan to Complete Roosevelt Hotel Privatization This Year, Hires Financial Advisor for Process
The Pakistani government is expediting the process to hire a new financial advisor for the partial sale of its New York-based Roosevelt Hotel. This move comes after the resignation of Jones Lang LaSalle (JLL) due to a potential conflict of interest.
JLL, which was appointed as the financial advisor in January 2024, resigned in July 2025. The company had completed the entire transaction structure for the joint venture, a model that Pakistan plans to adopt to maximize long-term value for the hotel. However, JLL stepped down to avoid any perceived or actual conflicts due to heightened client interest in the hotel and the cancellation of its lease agreement with New York City.
The resignation of JLL is expected to burden the national exchequer with at least $50 million in the form of debt servicing and maintenance, according to a report. This is due to the delay in hiring a replacement, a situation that the government is now working to rectify.
The Pakistan Privatization Commission is fast-tracking the hiring of a new financial advisor to ensure the privatization process proceeds "in a transparent and competitive manner." The government remains fully committed to concluding the sale expeditiously under the joint venture structure, with the target to complete the transaction by the end of 2025.
The Roosevelt Hotel, a 1,015-room landmark in Midtown Manhattan, has been a politically sensitive asset for Pakistan since its acquisition in 1979. Operations were suspended in 2020 due to COVID-19 losses, and no new revenue stream has been announced since. Alongside the Roosevelt, Pakistan aims to raise Rs86 billion (~$306 million) from privatizations in this fiscal year, including PIA and other assets.
Pakistani economist Dr. Sajid Amin expressed disappointment that authorities were unable to privatize the Roosevelt Hotel despite its prime location. However, Dr. Ali Salman, another Pakistani economist, praised the joint venture approach to the Roosevelt Hotel's privatization. He believes that the advisory firm's withdrawal would not significantly impact Pakistan's IMF reforms agenda.
The sale of the Roosevelt Hotel is part of a broader effort by Pakistan to offload loss-making state-owned assets under a $7 billion agreement with the International Monetary Fund (IMF). The new financial adviser will be responsible for finding a development partner for the joint venture. The advertisement for the new financial adviser has already been published, and the selection process is underway.
It is important to note that there is no delay of one-and-a-half years in the transaction as reported. The transaction will be completed within this year as planned. The issue of the loan will be addressed when the partnership agreement is signed, as per Schehzad. The National Bank of Pakistan issued the loan to the Roosevelt Hotel, according to Schehzad, and the communication with the finance ministry regarding the loan was a routine matter.
In conclusion, the Pakistani government is making significant strides in the privatization of the Roosevelt Hotel. The appointment of a new financial advisor will ensure the process continues smoothly, and the sale is expected to be completed by the end of 2025.
- The resignation of JLL in 2025 has created a delay in the hiring process of a new financial advisor for the Roosevelt Hotel, potentially burdening the national exchequer with additional costs for debt servicing and maintenance.
- The appointment of a new financial advisor is crucial for the sale of the Roosevelt Hotel, a prime asset in New York City, which is part of Pakistan's broader effort to offload loss-making state-owned assets.
- The sale of the Roosevelt Hotel forms a significant part of Pakistan's agreement with the International Monetary Fund (IMF), aimed at offloading state-owned assets.
- The Pakistan Privatization Commission is working diligently to fast-track the hiring process of a new financial advisor to ensure the sale of the Roosevelt Hotel proceeds in a transparent and competitive manner, with the target to complete the transaction by the end of 2025.
