After 100 years, PIA’s Roosevelt Hotel in New York to shut on Oct 31

KARACHI: The Roosevelt Hotel in New York City, owned by Pakistan’s national carrier, announced on Thursday it would shut down on October 31, citing “economic impacts.”
The hotel opened on September 23, 1924 and was leased by Pakistan International Airlines (PIA) in 1979, with an option to purchase the building after 20 years, which it did in 1999.
“Due to the current economic impacts, after almost 100 years of welcoming guests to The Grand Dame of New York, the Roosevelt Hotel is regretfully closing its doors permanently as of Oct 31, 2020,” an announcement posted on the hotel’s website said.
Government officials said the hotel would not be sold off but its share might be floated.
“No decision has been made as the financial advisor is hired,” Muhammad Bashir Khan, parliamentary secretary for privatization, told Arab News. “Will give shares but the ownership will remain with the government. Renovation work is being done and it will be reopened.”
Khurram Shahzad, a members of the Standing Committee of the National Assembly on Privatization, said a meeting would be held on Monday to “decide about the future plan for the hotel.”
On July 2, 2020, the Cabinet Committee on Privatization held a meeting on the privatization of Roosevelt Hotel, directing the privatization commission to hire a financial adviser to start the privatization process in the light of a report by Ms Deloitte which recommended, “that the highest and best use of the Roosevelt Hotel Property is to redevelop the site into a mixed use (through Joint Venture) of primarily office tower over retail and condominium.”
PIA officials say the Roosevelt hotel has remained profitable throughout its history and suffered a loss of $1.5 million last year.
In September this year, the government had approved up to $142 million to meet the hotel’s financial challenges.