Pakistan eyes to fetch $100m from Roosevelt Hotel sale

• Jones Lang LaSalle completes hotel’s valuation.
• CCoP approval awaited to proceed sale.
• Roosevelt lease with New York has ended.
  

ISLAMABAD: Pakistan’s Privatisation Commission has finalised the base valuation of the iconic Roosevelt Hotel in New York, The News reported, with expectations to fetch at least $100 million from its sale during the 2025-26 fiscal year.

The final amount from the transaction will hinge on the structure approved by the Cabinet Committee on Privatisation (CCoP), which is yet to greenlight a sell-off plan.

Sources say the value could double if the government secures prior regulatory approvals that future buyers would need for redevelopment. A simple “as-is” sale, however, would yield the lowest return.

“We are targeting maximum value,” a senior official said. “The amount will depend on the transaction structure. If we go for a joint venture model, the property could be worth four to five times more than the base valuation.”

The chairman of the Privatisation Commission told a foreign newspaper that a joint venture with a private investor, sharing both risks and rewards, could substantially enhance the hotel’s value.

However, such a model would only bring in a modest upfront payment in FY26, with larger gains expected over time.

Pakistan aims to raise Rs86 billion ($306 million) in privatisation proceeds in the next fiscal year, with the Roosevelt Hotel sale forming a key component alongside the privatisation of Pakistan International Airlines (PIA) and three electricity distribution companies.

Jones Lang LaSalle (JLL), one of the top US-based real estate advisors, has completed the hotel’s valuation and market analysis. The commission now awaits only the CCoP’s nod to proceed.

The Roosevelt Hotel, shuttered in 2020 amid steep financial losses during the Covid-19 pandemic, was briefly leased to the City of New York in 2023 to house asylum seekers — generating over $220 million in projected rental income. That lease expired in 2024, and no new revenue stream has since been announced.