PIA's Roosevelt Hotel in New York Closing its Doors Permanently

[Abbas Ali]

Federal Minister for Information and Broadcasting Shibli Faraz at a press briefing in Islamabad today dismissed Roosevelt Hotel sale reports in news media.

The minister informed that Pakistan has paid USD 1,28,000/- hotel liabilities and acquired hotel's full ownership.

The hotel was suffering losses and steps taken by the government prevented the property from changing hands.

Abbas

[Abbas Ali]

Roosevelt Hotel to be Shut Down by December 31 for Decision on its Future


Senate Standing Committee on Aviation meeting chaired by Senator Mushahidullah Khan

On October 20, Senate Standing Committee on Aviation meeting chaired by Senator Mushahidullah Khan was informed by CEO PIA Air Marshal (retired) Arshad Malik that government was not selling the Roosevelt Hotel in New York City. The hotel would be shut down by December 31 for renovation and/or decision on future of the property.


CEO PIA Air Marshal (retired) Arshad Malik at Senate Standing Committee on Aviation meeting

Different options including hotel renovation/repair work, demolishment of the existing building and construction of a new 100-storey hotel/multipurpose building are under consideration.

Hotel business is affected by COVID-19 pandemic and could increase its losses to six million dollars per year.

The iconic hotel's 'Red' financial health/negative balance is due to debt servicing, unionism, dilapidated condition of hotel building and rooms that require immediate repairs and renovation.

Abbas

[Amaad Lone]

NAB is worried about a hotel in New York why it was shut down.

Here in Pakistan the circular debt of the power sector increased by 600 billion rupees in 12 months (50 billion a month) which is twice the value of the Roosevelt Hotel. Instead of taking notice how the power sector is dragging down the the entire economy the NAB is worried about some hotel that has nothing to do with the finances of Pakistan.

The circular debt has reached 2200 billion rupees, which last year in june was at 1600 billion.

How about investigating who is paying their electric bill and who is not.

[Abbas Ali]

Source: theroosevelthotel.com

The Roosevelt Hotel room bookings apparently not possible after December 17.

According to recent news reports, the hotel would be shut down by December 31 for renovation and/or decision on future of the property.

Abbas

[Abbas Ali]

National Accountability Bureau (NAB) for "Closure of Roosevelt Hotel" case investigation will write letters to PIA, Finance and Establishment Divisions for data collection.

On November 2, Islamabad High Court (IHC) asked the government to submit its reply/policy on Roosevelt Hotel's future. The court is hearing a petition against closure of the hotel.

Abbas

[Abbas Ali]

According to news sources:

PIA has received letter from National Accountability Bureau (NAB) Rawalpindi for investigation of "Closure of Roosevelt Hotel" case.

Abbas

[Abbas Ali]

On November 26, National Assembly's Standing Committee on Government Assurances was informed that 140 million dollars are required to save the Roosevelt Hotel. Hotel's 105 million dollars loan has been paid, the committee was told.


Urdu daily "Awaz" November 27, 2020, edition.

Abbas

[Adnan Anwar]

Roosevelt Hotel is still open. This time and age, all Hotels are loosing money to AirBNB that is besides COVID-19.

Chairman National Accountability Bureau (NAB) Justice (Retired) Javed Iqbal has taken notice of the closure of the Roosevelt Hotel from October 31, 2020, and ordered Director General (DG) NAB Rawalpindi to investigate the matter.

The investigation will determine reasons for hotel's closure and identify individuals who failed to make it a profitable hotel.

Abbas

[Abbas Ali]

Looks like farewell message on The Roosevelt Hotel website homepage https://www.theroosevelthotel.com/.

"We thank you all for letting us be part of the very best of New York for the last 100 years."



Reservations also not possible.



Abbas

[Abbas Ali]

The Roosevelt Hotel closed its doors permanently on December 18 due to a severe loss of revenue caused by the coronavirus/COVID-19 pandemic.

The iconic 1,000-room hotel named after US President Theodore Roosevelt located in New York is owned by Pakistan International Airlines (PIA) subsidiary PIA Investments Limited (PIAIL). The hotel first opened in 1924.

https://patch.com/new-york/midtown-nyc/ ... doors-good

Abbas

[Abbas Ali]

Today, the senate was informed:

Roosevelt Hotel is not being sold or privatized.

The hotel was closed down on December 18, 2020, due to losses and to prevent further losses.

Privatization Ministry is considering to lease out hotel site.

Roosevelt Hotel earnings began falling in 2010.

Hotel earned profit of USD 8,333 in year 2010.

The profit fell to USD 1,495 in year 2019.

USD 150 million loan was taken to run Roosevelt Hotel.

Revival of hotel industry in USA not expected before year 2024.

Abbas

[Amaad Lone]

The government should hand over Roosevelt and Scribe Hotels to State Bank of Pakistan.

I return the State Bank pays off loans of equal amounts of PIA.

The hotels is moved out of PIAL books and loans are reduced. It becomes the headache of the GOVERNMENT.

The sovereign guarantees that the government has given for PIA loans are cleared.

[baberblues]

1 THOUSAND dollar profit? Is that it?

[Abbas Ali]

According to written/printed information submitted by the Aviation Division in the Senate:

The Roosevelt Hotel earned annual profit of USD 8,333 in year 2010.



The Roosevelt Hotel earned annual profit of USD 1,495 in year 2019.



Abbas