- Jones Lang Lasalle ends the hotel assessment.
- The approval of the CCOP was waiting to proceed with the sale.
- The Roosevelt lease with New York ended.
Islamabad: The Pakistan privatization commission finalized the assessment of the basis of the iconic Roosevelt Hotel in New York, The news Reported, in expectations to recover at least $ 100 million from its sale during the year 2025-26.
The final amount of the transaction will depend on the structure approved by the firm committee on privatization (CCOP), which has not yet a sales plan.
Sources indicate that the value could double if the government ensures previous regulatory approvals that future buyers would need redevelopment. A simple sale “as is”, however, would produce the lowest yield.
“We target maximum value,” said a senior official. “The amount will depend on the transaction structure. If we opt for a joint venture model, the property could be worth four to five times more than the base assessment. ”
The president of the privatization committee told a foreign newspaper that a joint venture with a private investor, sharing risks and awards, could considerably improve the value of the hotel.
However, such a model would only provide a modest initial payment during fiscal year 26, with larger gains expected over time.
Pakistan aims to increase 86 billion rupees ($ 306 million) in privatization in the next financial year, the sale of the Roosevelt hotel forming a key element alongside the privatization of international Pakistani airlines (PIA) and three electricity distribution companies.
Jones Lang Lasalle (JLL), one of the best real estate advisers based in the United States, has completed the assessment and analysis of the hotel market. The Commission is now waiting for the CCOP’s wink to continue.
The Roosevelt hotel, closed in 2020 in the midst of high financial losses during the COVI -19 pandemic, was briefly rented in the city of New York in 2023 to house asylum seekers – generating more than $ 220 million in expected rental income. This lease expired in 2024 and no new source of income has since been announced.