Private companies, including Citigroup, propose to guide Pakistan in the process of privatizing the Roosevelt Hotel
Roosevelt Hotel Privatization Process Moves Forward
The privatization of the iconic Roosevelt Hotel, located near Grand Central Terminal, Times Square, and Fifth Avenue, is expected to be completed this year. The government of Pakistan has accelerated efforts to appoint a new adviser for the privatization process, with several international firms vying for the role.
Seven consortia have submitted bids to advise Pakistan on the privatization of the century-old Manhattan property, which is owned by Pakistan International Airlines (PIA) through its investment arm. These consortia include Greysteel, B6 Real Estate Advisers and Kirkland & Ellis LLP, CBRE, Morgan Stanley, Paul Hastings, and Goldman Harris LLC, as well as Alvarez & Marsal Private Equity Performance Improvement Group LLC, Proskauer, and FGE Ebrahim Hosain (FGE-EH).
The Privatization Commission, responsible for overseeing the privatization process, has appointed a number of advisers to help guide the joint venture model they are pursuing. These advisers include Ankura, Bank of Punjab, Baker McKenzie and Orr, Dignam & Co., Savills, MACRO (a Savills Company), Cirtin Cooperman & Company LLP, Hogan Lovells, Mohsin Tayebaly & Co., Citi Bank, Cushman & Wakefield, Proskauer Rose LLC, HaiderMota & Co., Newmark, Herbert Smith Freehills Kramer (US) LLP, and Peregrinvest LLC.
Global real estate firm Jones Lang LaSalle (JLL) has resigned as financial adviser for the partial sale of the Roosevelt Hotel due to a conflict of interest. The technical bids of these seven consortia were opened on September 16, and the Privatization Commission is required to announce the legally successful bidder within 30 days after the opening of the bids, as per PPRA rules.
The goal of the joint venture is to maximize long-term value as part of a broader privatization drive agreed under Pakistan’s $7 billion IMF program. The Roosevelt Hotel is considered one of Pakistan's most valuable foreign assets, and the Privatization Commission is required to complete the evaluation process within a fixed timeframe to ensure transparency and accountability in government contracting.
The Roosevelt Hotel, which has been closed since 2020 due to heavy losses but has been used intermittently since then, including as a temporary migrant shelter, is expected to undergo significant changes once the privatization process is completed. The new owner will have the opportunity to restore the property to its former glory and revitalize the surrounding area.
Stay tuned for updates on the privatization process and the future of the Roosevelt Hotel.
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