PIA’s Roosevelt Hotel leased out for three years, announces Saad Rafique

LAHORE: Minister for Railways and Aviation Khawaja Saad Rafique on Sunday confirmed that the ‘precious asset’ Roosevelt Hotel, owned by the Pakistan International Airlines (PIA), has been leased out to the New York City administration for three years, ARY News reported.

Addressing a press conference in Lahore, the federal minister said that an agreement has been reached between Pakistan International Airline-Investment Ltd (PIA-IL) and New York City Administration for the utilisation of Roosevelt Hotel on rental for three years.

“An agreement has been reached with the New York City Administration, whereby the government of Pakistan will receive $220 million,” Saad Rafique said, adding: “Under this agreement, 1,250 rooms of the hotel have been leased for a period of three years”.

The minister noted that the Roosevelt Hotel, which was closed in 2020 due to the COVID-19 pandemic, has become a major concern for the government. “There was a severe risk that if the hotel is not utilised, it will be affected by landmarking,” he added.

“The landmarking would have affected the price of the Pakistan-owned hotel,” Rafique claimed. He expressed regret that previous government had made the decision to run the Roosevelt Hotel through a public private partnership.

He noted that the ‘major issue’ the government was facing was salaries of the hotel’s employees. “Now, as a result of the agreement, 77 employees will serve there and the rest will be terminated,” he said, adding that it was decided that no employee from the Civil Aviation Authority (CAA) will be employed at the hotel.

The Roosevelt Hotel, established in 1924, is among the historic hotels in the United States and is situated in the luxurious downtown area of Manhattan.

READ: PIA’S ICONIC ROOSEVELT HOTEL NOT TO BE SOLD: MINISTER

PIA acquired the 19-storey building in 1979 on the partnership, from its own profits and as a part of PIA’s diversification strategy.

In October 2020, the PIA-owned Roosevelt Hotel in New York announced to permanently close its doors after nine decades due to massive financial losses.

Outsourcing of airports

During the press conference, Aviation Minister Khawaja Saad Rafique announced that the federal government has decided to outsource three international airports of Pakistan – Karachi, Islamabad and Lahore.

The minister revealed that the operation of these airports will be entrusted to an international firm, with the aim of enhancing the services provided. However, he said, outsourcing of airports does not mean selling them.

“An agreement has been signed with the International Financing Corporation (IFC), and numerous countries have expressed interest in collaborating with the firm,” Rafique added.

He also highlighted the lack of basic facilities in the existing airports, emphasising the need for improvement. Rafique argued that involving private entities in airport management and operations would lead to improved basic facilities for passengers and travelers.

“Plans are underway to make Suhrawardi Khan Airport an international airport,” he added.

In light of the current state of affairs, Saad Rafique emphasised that Pakistan International Airlines (PIA) cannot continue in its current condition and that changes are required to improve its operations.