Roosevelt Hotel New York Faces Uncertain Future

Midtown Manhattan’s historic Roosevelt Hotel is back in the news. For years, everyone thought it would be torn down. The plan? Build a new skyscraper.

But now, things might change. Pakistan, which owns the hotel, is rethinking its plans. The hotel’s fate is still up in the air.

This building has been a symbol of luxury and history for decades. If Pakistan decides to keep it, the Roosevelt Hotel could continue shaping New York City’s skyline. This shift shows how the city is trying to balance old landmarks with modern development.

Roosevelt Hotel New York: Plans Still Not Confirmed

Muhammad Ali, an aide to Pakistan’s Prime Minister on privatization, told Arab News that demolition is “not yet confirmed.” The government is exploring options.

aKeeping the hotel is on the table if it makes financial sense. A final decision is expected in the coming months after a new financial adviser is appointed.

The Roosevelt Hotel is owned by Pakistan International Airlines (PIA) through its investment arm. It has been closed since 2020. The government hopes to maximize the property’s value as part of its privatization efforts. They are looking at a joint venture model. Demolition is just one option.

A Storied Past of the Roosevelt Hotel

Opened in 1924, the Roosevelt Hotel quickly became a New York landmark. Its location near Grand Central Terminal made it a favorite for travelers. Many famous guests stayed there over the years.

By 2020, the hotel faced financial problems and closed. In 2023, it temporarily served as a shelter for asylum seekers. More than 173,000 people were processed there before the facility closed in June 2025.

Privatization Plans and Redevelopment Options

Pakistan’s government wants to sell or redevelop some state-owned assets, including the Roosevelt Hotel. The hotel could be part of a $7 billion International Monetary Fund-backed privatization effort.

One plan is a joint venture. Pakistan would keep 50% ownership while a private partner invests in redevelopment. This could generate steady income without selling the hotel outright.

Another proposal is more dramatic: demolish the hotel and build a modern skyscraper. The new building could reach 1.3 million square feet with offices, apartments, and retail. Air rights would be used to increase the total size.

Joint Venture Proposal for Long-Term Revenue

Burkhan World Investments, led by Shahal Khan, has a plan for a 99-year ground lease with PIA Holding Co. There’s also an option to extend for another 99 years. Pakistan would keep 50% equity. The tower would be built on the hotel’s 42,000-square-foot site, plus additional space using air rights.

This joint venture could help Pakistan revitalize the site and secure long-term revenue. Partnering with private developers also addresses PIA’s financial challenges.

Preservation vs. Progress: Balancing Heritage and Development

The Roosevelt Hotel debate highlights a larger question: how do you balance history with development? Some say the hotel should be preserved for its architectural and cultural value. Others argue a new skyscraper could boost the economy and provide more space in Midtown.

The final decision will consider money, market demand, and public opinion. Changing a building that has stood for over a century is never easy.

Looking Ahead: The Future of the Roosevelt Hotel

The Roosevelt Hotel’s future is uncertain. Whether it’s preserved or replaced, its history and significance are undeniable. Pakistan’s privatization efforts will determine its fate.

One thing is clear: the Roosevelt Hotel has been, and will continue to be, a symbol of New York City’s evolution.

Author Profile

Saleem Mubarak: The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.

He also writes humorous articles about real estate, investors, and realtors.