Islamabad 30 July: Pakistan International Airlines (PIA) has earned a net profit of $24.84 million through the lease of its Roosevelt Hotel property in New York City, where the iconic building was used as a migrant shelter under a multi-million-dollar agreement with the city government.
The Roosevelt Hotel, fully owned by PIA through its investment subsidiary since 2000, was leased to the City of New York in May 2023 for approximately $220 million over three years. The hotel, located in Midtown Manhattan, was used to accommodate and process asylum seekers during a surge in migrant arrivals. However, the agreement was terminated in early 2025 and the hotel was vacated by June.
The windfall marked one of PIA’s rare profitable returns from its foreign assets, offering some relief amid its broader financial challenges and restructuring process. The Roosevelt Hotel deal came as part of the government’s renewed push to leverage PIA’s considerable assets to attract investment and meet fiscal targets under an IMF-supported privatization framework.
Pakistan’s Privatisation Commission has valued the Roosevelt property conservatively at $100 million as a base price, but officials expect a joint venture redevelopment could boost its worth to over $1 billion. The plan includes converting the property into a mixed-use commercial site while retaining partial government ownership. The global real estate firm JLL, initially hired as transaction advisor, withdrew in July 2025 due to potential conflicts of interest.
In parallel, the government has shortlisted four bidders for a majority stake in PIA, part of its broader strategy to divest state-owned enterprises. The privatization of PIA and other assets is expected to contribute over Rs 86 billion to government revenues in the 2025–26 fiscal year.
READ MORE: One-Transaction Sale Plan for Roosevelt Hotel
The Roosevelt Hotel’s positive return underscores the potential of PIA’s international holdings, which include prime land such as a 968,000-square-yard plot along Karachi’s Super Highway. Though listed at a historical valuation of Rs 10 billion, real estate experts believe the current market value is far higher, offering additional avenues for financial recovery.
