Pakistani government-owned Roosevelt Hotel has announced that “it isclosing its doors permanently.”
The hotel’s management has cited economic reasons for its abrupt closure.“Due to the current economic impacts, after almost 100 years of welcomingguests to “the Grand dame of New York” The Roosevelt Hotel is regretfullyclosing its doors permanently as of October 31, 2020,” said a statementreleased on the hotel’s behalf.
Another statement said that all reservations beyond October will be offeredalternative options by the hotel management. “For those guests with futurereservations, we are working on communicating alternative accommodations,”noted the statement further.
The hotel was bought by the PIA Investment Limited on lease in 1979. PIApurchased the property for $36.5 million in 1999. The Roosevelt Hotel hasbeen managed by Interstate Hotels & Resorts.
In July Pakistan’s government decided against selling the hotel andannounced to run it through a joint venture.
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According to a Finance Division statement, the Privatisation Commission wasto hire the services of a financial adviser to start the process of itsprivatization.
A report by accounting firm Deloitte from July 2019 recommended that “thehighest and best use of the Roosevelt Hotel property is to redevelop thesite into a mixed-use [property] (through a joint venture) of primarily anoffice tower over retail and condominium.”
Earlier, the PPP had opposed the closure of the hotel by calling it anill-timed move. “Is this the time to sell Roosevelt Hotel, when due to thepandemic property prices have come down significantly and it will result ina loss to Pakistan as we will not get the right price?” PPP’s leader SherryRehman said in a statement.
