Pakistan, US Sign Pact to Redevelop New York’s Roosevelt Hotel

Pakistan and the United States have signed a landmark agreement to redevelop the historic Roosevelt Hotel, marking a new phase in bilateral economic and real estate cooperation. The deal aims to transform the long-shuttered property in Midtown Manhattan into a modern, multi-purpose complex while preserving its architectural heritage.
Officials from both governments confirmed that the redevelopment project will be carried out through a joint framework involving Pakistan International Airlines’ investment arm and U.S.-based development partners. The Roosevelt Hotel, owned by Pakistan through its national airline, has remained closed since 2020, becoming a symbol of both financial strain and untapped potential.
A Strategic Asset Reimagined
Located just steps from Grand Central Terminal, the Roosevelt Hotel has long been considered one of Manhattan’s most valuable properties. Built in 1924, it once hosted presidents, film stars, and global dignitaries. However, years of declining tourism and rising operational costs forced its closure during the pandemic.
Under the newly signed pact, the site will be converted into a mixed-use facility combining hospitality, residential units, office space, and community services. Project planners say the redevelopment will be aligned with New York City’s evolving urban needs, including housing demand and commercial revitalization.
A senior Pakistani official described the agreement as “a breakthrough in unlocking the value of overseas national assets.” He added that the project would generate long-term revenue for Pakistan while strengthening commercial ties with the United States.
Economic and Diplomatic Significance
The agreement reflects improving economic cooperation between Pakistan and the United States, particularly in investment and infrastructure sectors. Analysts say the Roosevelt redevelopment could serve as a model for future public-private partnerships involving foreign-owned properties in major U.S. cities.
U.S. officials welcomed the move, emphasizing that the project would bring new jobs and stimulate local business activity in Midtown Manhattan. Construction and renovation work is expected to employ hundreds of workers over the next several years, with long-term positions created once the complex becomes operational.
“This project represents confidence in New York’s recovery and in international collaboration,” said a city development spokesperson.
Financial Recovery for Pakistan
For Pakistan, the Roosevelt Hotel has been a financial burden in recent years. Losses linked to maintenance and missed commercial opportunities prompted debates over whether the asset should be sold outright or leased to developers. The new pact avoids a full sale, instead opting for redevelopment under a long-term lease and revenue-sharing model.
Officials familiar with the agreement said Pakistan would retain ownership while benefiting from steady income generated through commercial operations. This approach, they argue, protects a strategic overseas asset while addressing fiscal pressures faced by Pakistan’s aviation and tourism sectors.
The deal also aligns with Islamabad’s broader strategy to monetize state-owned assets and attract foreign investment without sacrificing national ownership.
Preservation and Modernization
Urban planners involved in the project have pledged to preserve key elements of the Roosevelt Hotel’s historic façade and interior design. At the same time, the complex will be upgraded with modern energy systems, digital infrastructure, and safety features.
Community leaders in New York City have expressed cautious optimism, urging developers to ensure that the redevelopment includes public spaces and affordable housing components. City authorities say discussions are underway to integrate social and environmental priorities into the final design.
Timeline and Next Steps
The redevelopment is expected to begin after regulatory approvals and design finalization, which could take up to a year. Initial projections suggest phased construction over three to five years, depending on market conditions and financing arrangements.
Joint oversight committees from both countries will monitor progress and ensure compliance with contractual and legal frameworks. Transparency provisions have been included to address past concerns about the management of overseas state assets.
A Symbol of Renewal
Beyond bricks and mortar, the Roosevelt Hotel redevelopment carries symbolic weight. Once a beacon of glamour and later a reminder of pandemic-era decline, the property is now positioned as a sign of renewal and cooperation between two longtime partners.
As one official noted, “This is not just about a building. It is about restoring value, confidence, and trust in shared economic ventures.”
If successful, the project could redefine how governments manage overseas assets and set a precedent for collaborative urban redevelopment in global cities.