Govt decides against selling off PIA-owned hotel in New York, to run it through joint venture

Updated July 02, 2020

The PIA-owned Roosevelt Hotel in New York. — Photo: Dawn/File
The PIA-owned Roosevelt Hotel in New York. — Photo: Dawn/File

According to a Finance Division statement, the CCoP directed the Privatisation Commission to hire the services of a financial adviser to start the process for the transaction in light of a report by accounting firm Deloitte from July 2019 which recommended that “the highest and best use of the Roosevelt Hotel property is to redevelop the site into a mixed-use [property] (through joint venture) of primarily an office tower over retail and condominium.”

The meeting was informed that Deloitte would update its study on the hotel transaction in the next four weeks and the same will be shared with the CCoP.

Adviser to PM on Finance Dr Abdul Hafeez Sheikh chairs a CCoP meeting in Islamabad on Thursday. — Photo: Finance Division
Adviser to PM on Finance Dr Abdul Hafeez Sheikh chairs a CCoP meeting in Islamabad on Thursday. — Photo: Finance Division

Additionally, “as requested by the Aviation Division”, the CCoP also decided to de-notify a task force formed last year to develop a business plan and for framing the terms of reference for leasing the Roosevelt’s site and setting up a joint venture project, the press release added.

The task force, whose formulation was approved by the CCoP in its meeting in November last year, was chaired by Minister for Privatisation Muhammad Mian Soomro and included Special Assistant to the Prime Minister on Overseas Pakistanis Zulfi Bukhari and other officials as members.

Ill-timed?

On Wednesday, amid reports that the government was holding the CCoP meeting to discuss the plan to sell the Roosevelt Hotel, the PPP had opposed the move, terming it ill-timed.

“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 parliamentary leader in the Senate Sherry Rehman had questioned in a statement.

“The property is worth billions and it was making a profit when I was serving as ambassador to the US,” she added.

The PIA-owned 19-storey hotel with 1,025 rooms plus allied facilities in New York is considered a valuable property that also carries cultural significance for Pakistan. It has remained in the news for the last several years over its proposed auction. However, the management of PIA in the past had always rejected the claims of auction, etc.

The hotel was acquired by PIA Investment Limited on lease during the year 1979 with an option to purchase the property. The airline had purchased the hotel for $36.5 million against a demand of $59.5m by contesting a lawsuit against the owner in 1999. The Roosevelt has been managed by Interstate Hotels & Resorts since 1997.

Dawn

8 thoughts on “Govt decides against selling off PIA-owned hotel in New York, to run it through joint venture

  • July 13, 2020 at 6:23 am
    Permalink

    Thank you for each of your work on this web site. Kim loves doing investigations and it is easy to understand why. All of us learn all concerning the powerful mode you render useful tactics via this web site and in addition welcome response from some other people about this point while my simple princess is now learning a great deal. Take pleasure in the rest of the new year. You are conducting a glorious job.

    Reply
  • July 16, 2020 at 7:19 am
    Permalink

    I would like to get across my admiration for your kind-heartedness for men who should have help on this important situation. Your personal commitment to getting the message all around appeared to be really practical and have really made somebody like me to achieve their desired goals. Your new valuable advice signifies much a person like me and much more to my colleagues. Many thanks; from everyone of us.

    Reply
  • July 20, 2020 at 2:44 am
    Permalink

    I must show my gratitude for your kindness supporting people who require help on in this idea. Your real dedication to getting the solution across appeared to be extraordinarily insightful and has in every case made people like me to arrive at their ambitions. Your personal warm and friendly instruction can mean this much to me and even further to my peers. Best wishes; from everyone of us.

    Reply
  • July 23, 2020 at 5:53 am
    Permalink

    My wife and i felt joyous when Jordan managed to carry out his basic research while using the ideas he was given through the web site. It is now and again perplexing just to continually be freely giving secrets that many some people might have been trying to sell. And we know we’ve got the writer to be grateful to for that. The specific explanations you’ve made, the easy blog navigation, the relationships you will make it easier to promote – it’s mostly incredible, and it is leading our son in addition to the family reason why this matter is amusing, which is certainly highly vital. Thanks for the whole lot!

    Reply
  • July 26, 2020 at 1:16 pm
    Permalink

    My spouse and i felt contented when Raymond managed to deal with his analysis while using the ideas he gained from your own web site. It is now and again perplexing just to be offering guidelines that many some others might have been selling. So we do know we have the blog owner to be grateful to for this. The main illustrations you have made, the easy blog menu, the friendships you will give support to instill – it is mostly astonishing, and it’s leading our son and us feel that the article is brilliant, which is certainly extraordinarily vital. Many thanks for all!

    Reply
  • August 1, 2020 at 4:48 am
    Permalink

    I want to express appreciation to the writer for bailing me out of this type of trouble. Just after searching throughout the the net and getting strategies that were not productive, I figured my entire life was over. Living without the answers to the problems you have fixed all through your blog post is a crucial case, as well as the kind that could have in a wrong way affected my career if I had not encountered the blog. That knowledge and kindness in playing with a lot of stuff was priceless. I don’t know what I would have done if I hadn’t encountered such a subject like this. I can at this moment look forward to my future. Thank you very much for your high quality and result oriented help. I won’t be reluctant to refer your web sites to any person who will need guidance on this issue.

    Reply
  • August 4, 2020 at 5:43 am
    Permalink

    I intended to put you a little bit of observation to help thank you very much as before for your remarkable views you’ve featured on this website. It is quite tremendously generous with people like you to give without restraint all that a lot of folks could possibly have offered as an e-book in making some cash on their own, most notably seeing that you could possibly have done it in case you desired. The suggestions additionally worked to be the good way to fully grasp that other people online have the same keenness just as my very own to know the truth very much more around this condition. I know there are some more pleasant opportunities ahead for many who start reading your site.

    Reply
  • August 7, 2020 at 3:29 am
    Permalink

    I’m writing to make you understand of the awesome discovery my wife’s princess experienced checking your web site. She discovered a lot of things, including what it’s like to possess a great helping character to have the mediocre ones completely know precisely chosen impossible subject matter. You actually exceeded her desires. Thanks for producing the important, safe, revealing and also cool thoughts on the topic to Ethel.

    Reply

Leave a Reply

Your email address will not be published.