PIA Roosevelt Hotel faces the worst setback after 100 years of its services
Pakistani government-owned Roosevelt Hotel has announced that "it is closing 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 welcoming guests to “the Grand dame of New York” The Roosevelt Hotel is regretfully closing its doors permanently as of October 31, 2020,” said a statement released on the hotel's behalf.
Another statement said that all reservations beyond October will be offered alternative options by the hotel management. "For those guests with future reservations, we are working on communicating alternative accommodations," noted the statement further.
The hotel was bought by the PIA Investment Limited on lease in 1979. PIA purchased the property for $36.5 million in 1999. The Roosevelt Hotel has been managed by Interstate Hotels & Resorts.
In July Pakistan's government decided against selling the hotel and announced to run it through a joint venture.
According to a Finance Division statement, the Privatisation Commission was to hire the services of a financial adviser to start the process of its privatization.
A report by accounting firm Deloitte from July 2019 recommended that “the highest and best use of the Roosevelt Hotel property is to redevelop the site into a mixed-use [property] (through a joint venture) of primarily an office tower over retail and condominium.”
Earlier, the PPP had opposed the closure of the hotel by calling it an ill-timed move. “Is this the time to sell Roosevelt Hotel, when due to the pandemic property prices have come down significantly and it will result in a loss to Pakistan as we will not get the right price?” PPP’s leader Sherry Rehman said in a statement.