ISLAMABAD: The Islamabad High Court (IHC) on Monday directed the government to submit a detailed response outlining the government’s plan regarding the state-owned Roosevelt Hotel in New York City.
The hotel, a Pakistan International Airlines (PIA) possession in the heart of posh Manhattan neighbourhood, shut its doors on guests permanently on Oct 31.
“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 Oct 31, 2020,” an announcement shared on the hotel’s website had said.
Justice Amir Farooq, while presiding the hearing of a petition against the hotel’s closure, inquired about the government’s plans for the future of the property.
“It is being converted into apartments and offices. The Roosevelt Hotel has its own historical significance [so much so that] US President Donald Trump wants to buy it,” responded the petitioner’s counsel.
The court observed it had already disposed of a petition regarding the hotel after the federal government’s statement.
The court also directed the assistant attorney general (AAG) to apprise the IHC on the policy matter of the hotel and adjourned the hearing for one week.
Earlier on October 2, Senate Standing Committee on Aviation was told the Roosevelt Hotel was not being sold but would either be renovated or reconstructed in the future.
“Either the Roosevelt Hotel will be renovated or it will be demolished to build a 100-storey building,” PIA chief executive officer Arshad Malik told the panel of the Upper House, which met under the chairmanship of Senator Mushahidullah Khan.
Malik observed that the purpose of reconstructing the hotel was to reduce the expenses and turn it into a profit-making entity.
He had told the body that the current market value of the Roosevelt Hotel assessed by Deloitte was $562 million. At this, Senator Khan pointed out that the value of the hotel had already been assessed as $1,700 million and that it was a profit-making entity a year ago. He asked how it was now going into losses.
Malik replied that since 2015, the property had been making profits and incurring losses as well and added that $105 million were due towards it.
