Pakistan’s Roosevelt Hotel in NYC Faces Tax Issues Amid Redevelopment Talks
NEW YORK (AP) — New York City officials say the Roosevelt Hotel, owned by Pakistan’s national airline, is behind on millions of dollars in property taxes and water bills, despite receiving substantial taxpayer funds to house migrants. The situation comes as a potential redevelopment deal involving the U.S. government looms, raising questions about future tax obligations.
The hotel, located in Midtown Manhattan, currently owes $13.6 million in overdue property taxes and nearly $1 million in unpaid water bills, according to a spokesperson for the city’s Department of Finance. This debt accumulated even after a payment agreement was signed in September 2023, and despite receiving $146.6 million over two years for operating as a migrant shelter. A $573,361 payment due in January was missed, along with a $3.9 million half-year payment.
The Roosevelt served as a primary intake center for migrants beginning in 2022, processing over 173,000 of the 232,000 asylum seekers who arrived in the city. At its peak, the hotel housed approximately 2,600 migrants nightly under a $220 million contract, costing around $202 per night per room.
However, the hotel reportedly became overwhelmed, with reports of migrants sleeping in retail spaces and on sidewalks. Concerns were also raised regarding security, with Homeland Security officials noting the presence of the Venezuelan street gang Tren de Aragua, allegedly organizing robbery crews from the hotel. A Venezuelan national previously housed at the Roosevelt was later convicted in the murder of a University of Georgia nursing student.
Pakistan International Airlines has owned the Roosevelt Hotel since 1999 and had been attempting to sell the property, hiring real estate firm JLL to solicit bids exceeding $1 billion. However, JLL later withdrew due to conflicts of interest.
A potential solution involves a joint venture with the U.S. government to redevelop the Roosevelt into an office tower. Such a deal could trigger a federal tax exemption, a practice typically granted when a foreign government purchases U.S. property. While a Memorandum of Understanding has been signed, the venture remains in its early stages.
The Department of Finance confirmed that any taxes accrued before potential government ownership would still be due. The city is also still seeking $80.5 million in FEMA reimbursements that were previously clawed back.
Requests for comment from the Pakistani Embassy, the General Services Administration, the city Department of Environmental Protection, and the Mayor’s office went unanswered.
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