Several major global firms, including Citigroup and CBRE, have submitted bids to become financial adviser for the privatization of the Roosevelt Hotel in New York, a prized asset owned by Pakistan International Airlines (PIA).
This development comes after the resignation of Jones Lang LaSalle (JLL), which stepped down due to a business conflict of interest after some of its own clients expressed interest in the property. The government of Pakistan is determined to move forward with the sale of a minority stake in the hotel and establish a joint venture with private developers or investors to redevelop or operate the historic property, with a focus on keeping the transaction structure flexible and minimizing fiscal exposure for the state.
Following JLL’s exit, the Privatisation Commission swiftly issued calls for expressions of interest, attracting bids from some of the biggest names in real estate advisory. Citigroup, CBRE, Savills, Cushman & Wakefield, Grey Steel, and Ankura are among the leading contenders, reflecting the global significance of the asset. The government aims to appoint a new adviser who can ensure a transparent, conflict-free process and deliver a deal that meets both financial and strategic objectives.
The Roosevelt Hotel has long been one of Pakistan’s most visible international holdings, located just steps away from Manhattan’s Grand Central Station. The property has generated revenue for decades but faced operational challenges. It closed in 2020, and authorities later used as temporary accommodation for migrants.
The decision to seek private investment reflects a broader trend among emerging economies to integrate with global investment markets, outsourcing advisory roles to experienced international firms to maximize asset value. The outcome of this transaction carries significant economic, reputational, and diplomatic implications for Pakistan as it seeks to balance fiscal responsibility with long-term asset stewardship.
Reports indicate that Pakistan is seeking at least $1 billion for the minority stake, a figure that will depend heavily on property condition, redevelopment costs, and the strength of New York’s real estate market.
The stakes are high: a well-managed transaction could set a precedent for future overseas asset deals and deliver meaningful fiscal relief for Pakistan, while a misstep could damage investor trust.