Why Pakistan Is Holding On To The Roosevelt Hotel Instead Of Selling To JPMorgan

March 6, 2026, 6:32 pm

Pakistan has blocked a proposed deal with banking giant JPMorgan Chase to purchase the historic Roosevelt Hotel in New York City. The decision ended more than a year of negotiations over the valuable Midtown Manhattan property. Instead of selling the asset outright, Islamabad now plans to redevelop the site through a joint venture that could attract more than $1 billion in private investment. The Roosevelt Hotel has become central to Pakistan’s strategy to monetize overseas assets while retaining ownership during a period of economic pressure, rising debt and financial reforms.

Pakistan Rejects JPMorgan’s Proposal

JPMorgan Chase pursued the Roosevelt Hotel property for more than a year. The bank wanted the site as part of its expanding corporate footprint near its new headquarters tower on Park Avenue.

However, Pakistan ultimately rejected the proposal. Officials decided that selling the property would not deliver its full long-term value.

Instead, Islamabad is planning to redevelop the land with the help of a joint venture. This will help Pakistan retain ownership of the land and also attract massive private investments in the country.

According to reports, as mentioned by Moneycontrol, the redevelopment of the land is expected to attract investments of more than $1 billion. Additionally, an upfront payment of $100 million is also expected as part of the redevelopment plan.

Through this approach, Pakistan hopes to unlock the property’s full commercial potential.

Why The Roosevelt Hotel Matters So Much

The Roosevelt Hotel occupies one of the most valuable pieces of land in Manhattan. The property sits in Midtown, just a short walk from Grand Central Terminal.

This location has become one of New York City’s most desirable business and real estate districts. Luxury towers and major corporate headquarters continue to rise across the neighborhood.

The hotel itself opened in 1924. Developers named it after former US president Theodore Roosevelt. For decades, the Roosevelt Hotel operated as a prominent hospitality landmark in New York.

Pakistan’s connection to the property began in 1979. At that time, Pakistan International Airlines leased the hotel. The airline later purchased the property outright.

As a result, the Roosevelt Hotel became one of Pakistan’s most important overseas assets.

Pandemic Closure and Building Decline

The Roosevelt Hotel operated successfully for decades and however, the COVID-19 pandemic severely affected its operations.

In 2020, the hotel shut down after pandemic-related losses made continued business unsustainable.

Later, the New York City administration leased the property. The city used the building as a migrant reception and shelter center.

This arrangement proved to be a source of temporary revenue for Pakistan. However, this further hastened the degradation of the old structure. The building now needs renovation or even re-development.

In spite of the condition of the building, the land is highly valuable. Pakistani officials claim that the property could be worth more than $1 billion.

Pakistan’s Economic Pressures

Pakistan’s decision not to sell the Roosevelt Hotel also reflects the country’s broader economic challenges.

The public debt has risen to around Rs 80.5 trillion, or $288 billion while this figure has resulted in a debt-to-GDP ratio of around 71 percent for Pakistan.

The country is spending a significant portion of its revenues on interest repayments. Therefore, Islamabad does not have much room for new investments or expenses.

Foreign exchange reserves also remain under pressure. Officials estimate reserves at about $16.2 billion, which covers only a few months of imports.

At the same time, Pakistan faces external financing needs between $19.4 billion and $25 billion in the coming fiscal year.

The country currently follows economic reforms tied to a $7 billion programme with the International Monetary Fund. These reforms include higher taxes and increased electricity tariffs.

Against this backdrop, monetizing overseas assets has become an important financial strategy.

Link To Pakistan International Airlines

The Roosevelt Hotel also connects directly to the financial troubles of Pakistan International Airlines.

Over the years, the airline accumulated massive liabilities. These debts eventually reached hundreds of billions of rupees.

The Pakistani government later absorbed more than Rs 600 billion in debt linked to the airline. Authorities took this step while restructuring and preparing the carrier for privatization.

In December, Pakistan sold a 75 percent stake in the airline. However, the government retained ownership of several major assets previously held by PIA.

The Roosevelt Hotel remained one of those assets.

Officials believe that redeveloping the property could generate substantial long-term revenue that may help offset the financial burden created by the airline’s past debts.

Why JPMorgan Wanted the Property

For JPMorgan Chase, the Roosevelt Hotel site held major strategic value.

The property sits close to the bank’s expanding Manhattan campus. JPMorgan recently completed its new headquarters tower at 270 Park Avenue.

The Roosevelt Hotel stands directly next to this growing corporate cluster.

Because of this proximity, the bank explored a 99-year ground lease for the site. This arrangement would allow JPMorgan to incorporate the land into a large corporate campus.

The bank had already provided a $105 million loan against the property in 2018.

Sources familiar with the negotiations told Moneycontrol that “JPM was aggressively chasing the Roosevelt hotel.”

However, Pakistan ultimately decided that redevelopment offered greater long-term value than a sale.

Muhammad Ali, chair of Pakistan’s privatization commission, clarified the government’s position. He said, “We are not engaged in discussions with any entity about sale of Roosevelt property and discussions on the joint venture will begin in March after appointment of our new financial adviser.”

Government adviser Khurram Schehzad also confirmed that Pakistan has “no plans to sell it outright.”

Diplomatic And Strategic Factors

The Roosevelt Hotel’s future also carries diplomatic importance.

Pakistan recently announced a cooperation framework with the US General Services Administration. The agreement aims to support the hotel’s upkeep, refurbishment and redevelopment.

US special envoy Steve Witkoff negotiated the arrangement with officials from both governments.

Islamabad described the cooperation as a “strategic economic initiative.” Officials believe it will help navigate the complex regulatory process involved in redeveloping a major Manhattan property.

However, the agreement does not yet include firm funding commitments or clear timelines.

A Billion-Dollar Decision

The Roosevelt Hotel has now come to symbolize a golden opportunity in the financial field for Pakistan.

Selling the property could provide quick financial respite. However, officials believe the move could undervalue one of the country’s most valuable overseas assets.

Redevelopment, in contrast, could generate significantly higher long-term returns.

Yet the project will require substantial investment, technical expertise and time.

Negotiations for a joint venture are expected to begin in March 2026. Until then, the Roosevelt Hotel remains a symbol of Pakistan’s attempt to turn a historic overseas property into a long-term financial lifeline.

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