Roosevelt Hotel in Midtown Manhattan is considered PIA’s crown jewel
US President Donald Trump is reportedly interested in purchasing Hotel Roosevelt, the Midtown Manhattan establishment owned by the national carrier Pakistan International Airlines (PIA). The interest was first mentioned by former defense minister Khawaja Asif which was later confirmed by airline’s managing director Najeeb Sami. “My information is that the US President wanted to buy the Roosevelt Hotel,” Asif said, who attended the senate committee’s meeting on a special invitation.
A good investment
The hotel has been considered as the crown jewel in PIA’s assets and three previous governments have tried to sell it without success. The current government also considered the idea before dropping it. Established in 1924, the 19 story hotel has been constantly posting profits. Last fiscal year was the first time that the hotel posted a $1.5 million loss. The hotel has previously loaned PIA $50 million as well as $25 million in dividends.
“The Roosevelt remained profitable for 99 years and suffered a loss of only $1.5 million last year,” Sami said. “In the past, the Roosevelt Hotel has given $50 million cash loan to PIA and another $25 million as dividend,” he added.
Time for changes
Sami feels that there is need to change the way the business is run and it is not possible to turn a profit under the current structure. He said that the hotel will be leased on a long term basis. Khawaja Asif vowed that the property should not be decided by those with vested interests.
“The carpetbaggers who have real estate overseas business and were made part of the Roosevelt Task Force want to acquire the property at throwaway prices,” Asif said. “People who own real estate businesses abroad should not be made part of the body deciding the hotel’s fate as it could lead to corruption,” he added.