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Sunday June 23, 2024

Roosevelt Hotel leased out to NY City firm for three years

By News Desk
May 30, 2023

KARACHI: The Pakistan International Airlines (PIA) has inked an agreement with the New York City Health and Hospitals Corporation management to lease out Roosevelt Hotel in the US state. In a statement on Monday, the PIA management said Roosevelt Hotel will be operated by the New York city local corporation for a period of three years. Under the agreement, the US firm will provide residential facilities to ‘housing migrants’ in the hotel.

Additionally, the agreement includes an 18-month guarantee provided by the corporation to PIA Investment Management. Furthermore, a settlement agreement has been reached between the New York City Health & Hospital Corporation and the New York Hotel and Gaming Trade Councils (the employees’ union) of the Roosevelt Hotel.

In a letter to stockholders at the Pakistan Stock Exchange (PSX), PIA management has informed them that following the new agreement, the Roosevelt Hotel has resumed its operations.

The PSX had recently sought a response from the PIA administration regarding the status of the Roosevelt Hotel. Last month, the Economic Coordination Committee (ECC) of the Cabinet approved the recommendations of the Ministry of Aviation to form a committee to negotiate with the New York City government and Roosevelt Hotel Union for the re-opening of the hotel.

The Ministry of Aviation submitted a summary of challenges and re-opening of Roosevelt Hotel, New York, and informed that the PIA Investment Limited (PIA-IL) management had got an opportunity offered by the New York City government to utilise the hotel (1,025 rooms) over a period of three years for migrant business at the rate of $200 per room per day.

After a detailed discussion, the ECC meeting chaired by Finance Minister Ishaq Dar had approved the formation of a four-member negotiating committee led by the Secretary Aviation Division to negotiate with the New York City Government and the Hotel Union. The ECC had also allowed PIA-IL/ RHC to utilise the funds of $1.145 million from the available balance as bridge financing to commence the re-opening work at the hotel.