Roosevelt Hotel sale stalls as JLL quits over conflict of interest

ISLAMABAD: The planned privatization of Pakistan’s iconic Roosevelt Hotel in New York will get delayed after global real estate giant Jones Lang LaSalle (JLL) resigned as financial adviser, citing a potential conflict of interest because some of its clients are interested in bidding for the property.

The government had planned to invite expressions of interest (EOIs) for the transaction next month, but now it must restart the process of hiring a new adviser, delaying the deal by at least four to six months, officials told The News on Thursday.

The Privatization Commission’s board is expected to meet soon to approve the hiring of a replacement financial adviser, which will then be advertised internationally.

Pakistan hired Jones Lang LaSalle Americas as the financial adviser for the Roosevelt privatisation transaction at a cost of Rs2.1 billion. The adviser’s fee includes milestone-based payments and a success fee of 0.95 per cent of the sale proceeds. JLL had already conducted due diligence on the property and submitted reports in June 2024, analyzing various transaction structures.

After over a year delay, on July 8, 2025, the Cabinet Committee on Privatization (CCOP) approved a joint venture (J/V) model for the hotel, one of three options presented by JLL, which also included an outright sale and a long-term lease. Officials said the joint venture model was chosen for its ability to maximize long-term value, provide multiple exit strategies and reduce future fiscal exposure.

JLL has conveyed interest in the Roosevelt Hotel from several of its clients following the cancellation of the hotel’s lease agreement with New York City, placing the firm in a compromising position. To avoid any perceived or actual conflict of interest, JLL withdrew from the assignment and offered to return all amounts received from the Privatization Commission during its engagement.

Despite the setback, the commission said it plans to fast-track the hiring of a new adviser to ensure the transaction proceeds transparently and competitively while building on the groundwork JLL has completed.