Pakistan, NYC Officials to Discuss Roosevelt Hotel’s Future as Lease Ends Early
WASHINGTON: Pakistani authorities and New York City officials are set to negotiate the future of the Roosevelt Hotel in Manhattan following the city’s decision to end its lease agreement ahead of schedule.
Originally opened in 1924 and named after former U.S. President Theodore Roosevelt, the iconic hotel sits adjacent to Grand Central Terminal, one of New York’s busiest transportation hubs.
In 2023, Pakistan International Airlines (PIA), which owns the property, signed a three-year lease worth approximately $220 million with the city. Under this agreement, the hotel was repurposed as a shelter for migrants and was expected to remain under city control until June 2026, after which it would revert to PIA. The arrangement was made in response to the rising number of migrants arriving in New York due to the humanitarian crisis at the U.S.-Mexico border.
Mayor Adams Confirms Early Closure
During a press briefing on Monday, New York City Mayor Eric Adams announced the city’s plan to terminate its lease and shut down both the Asylum Arrival Centre and the Humanitarian Emergency Response and Relief facilities operating at the Roosevelt Hotel.
“We are starting the process of closing the Roosevelt Hotel’s Asylum Arrival Centre,” Mayor Adams stated, confirming that the facility would cease operations by June this year, a full year before the lease was originally set to expire.
Despite the termination, the hotel will continue to accommodate migrants until the closure date. The decision follows a dramatic decrease in new migrant arrivals, which have dropped from a peak of 4,000 per week in 2023 to roughly 350 per week in recent days.
Controversy Over Migrant Shelter Use
The conversion of the Roosevelt Hotel into a migrant shelter sparked criticism from various groups, particularly conservative voices linked to the ‘Make America Great Again’ (MAGA) movement, who opposed the use of taxpayer funds for housing asylum seekers.
Businesses in Manhattan also voiced concerns, and former Republican presidential candidate Vivek Ramaswamy was among the most vocal critics, labeling the arrangement as an example of excessive government spending.
Mayor Adams has also been engaged in a legal battle with the Trump administration over the reversal of an $80.5 million federal transfer intended for immigrant services, arguing that managing an international humanitarian crisis should not fall solely on New York City’s shoulders.
Impact on Pakistan and PIA
For Pakistan, the premature termination of the lease raises concerns over financial losses, as the $220 million agreement was a crucial revenue source for PIA, which has struggled with financial difficulties in recent years. Given the hotel’s prime location in Manhattan, securing a comparable lease deal in the near future may prove challenging.
Additionally, concerns have been raised regarding damage sustained by the property during its use as a shelter. Reports indicate significant wear and tear to the hotel’s rooms and facilities, which could require substantial repairs before it is returned to PIA. While New York City officials have acknowledged the need for restoration, the question of who will cover the costs remains unresolved, potentially placing an added financial strain on the city or its taxpayers.
