Aviation and Railways Minister Khawaja Saad Rafique unequivocally denied rumors of the sale of Roosevelt Hotel to the US, which is owned by Pakistan International Airlines (PIA), JEE News reported.
In a press conference on Saturday, the aviation minister said that the future of the hotel will be decided by the new government next year.
He said that a financial consultant should be hired to explore all possibilities for joint ventures to develop the hotel proposed by the previous government.
Rafiq said that he wants the new government to make decisions regarding the Roosevelt Hotel.
“We just want to make it operational and selling the hotel is not an option, not in the future,” he asserted.
Talking about PIA, the minister said that the airline is in a lot of trouble. He said that PIA has earned 2.14 billion rupees from the joint venture with Turkish Airlines. He also said that a proposal for a joint venture by Emirates Airlines is under consideration.
The minister said that PIA’s revenue is expected to reach Rs 170 billion, which is considered the highest.
He also said that a new Boeing 777 would be added to PIA’s fleet in the coming days. He added that the airline expected its revenue to reach Rs 170 billion this year, the highest ever.
Permanently closed
PIA-owned Roosevelt Hotel permanently closed its doors to guests on October 31, 2020 due to financial difficulties.
“Due to the current economic impact, after nearly 100 years of welcoming guests to ‘The Grand Dame of New York,’ The Roosevelt Hotel is sadly closing its doors permanently effective October 31, 2020,” the notice said.
The development came after the then Economic Coordination Committee (ECC) approved $142 million in funds to address the hotel’s financial challenges.
Hotel is not for sale.
Now and again there have been rumors that the government has decided to sell the hotel, but the government has repeatedly denied these rumours.
Earlier on August 26, 2022, former finance minister Miftah Ismail clarified that the federal government has no intention of selling the shares of the Roosevelt Hotel to Qatar.
His comments came after reports that Pakistan was considering selling shares in state assets to secure loans from the Gulf state.
“Incidentally, we did not discuss the Roosevelt Hotel during our meetings,” the finance minister said.
Roosevelt Hotel
Built by Niagara Falls businessman Frank A. Dudley, the hotel opened its doors to guests on September 23, 1924. It was managed by United Hotels Company.
In 1979, the national carrier leased the hotel through its investment arm, PIA Investments Limited, with an option to purchase the building after 20 years. Prince Faisal bin Khalid bin Abdulaziz Al Saud of Saudi Arabia was a major investor in the 1979 deal.
In 1999, after completion of the 20-year term, PIA bought the hotel for $36.5 million.
In 2005, the airline agreed to buy out its Saudi partner for $40 million in exchange for Prince’s stake in the Hotel Scribe in Paris and PIA’s stake in the Riyadh Minhal Hotel.
Since then, the national carrier owns 99 percent of the hotel, while the Saudis hold just 1 percent.
