[NYguy]

https://nation.com.pk/11-Oct-2020/my...rk?version=amp

Mystery still shrouds fate of Pakistan-owned historic hotel in New York
PTI Parliamentary Secretary Bashir Khan says management of the building will be on shared basis

October 11, 2020
Imran Ali Kundi Imran Mukhta

Though mystery shrouds over the fate of Pakistan-owned historic Roosevelt Hotel in New York, a senior lawmaker of the ruling Pakistan Tehreek-e-Insaf (PTI) Saturday said that the government would only sell shares of the precious property located in one of the world’s major commercial hubs.

“The ownership of the property would remain with the government of Pakistan as we are going to sell only its shares,” said PTI lawmaker Muhammad Bashir Khan, the Parliamentary Secretary of Privatization.

As Khan was unaware about the future use of the hotel building, he only said that the management of the building would be on shared basis — the government and private holder of shares of the property — in future.

The opposition parties have shown their serious concerns over the decision of shutting down the hotel, one of the most prime properties of the world located in the heart of Manhattan. They say that a property of having high commercial value is perhaps being sold in a “shady way.”

The government keeps mum over the shutting down announcement. In July this year, the Cabinet Committee on Privatization (CCoP) had announced not to privatize the hotel rather to redevelop the site for a “mixed use” through a joint venture. It had taken the decision after reports emerged that the hotel, which opened its doors in 1924 and is named after US President Theodore Roosevelt, was being privatized.

Abdul Hafeez Khan, a spokesperson of PIA, also avoided to comment on the issue and only said that a detailed statement containing version of The Roosevelt’s management would be shared with the media soon.

The Privatization Commission (PC) is of the view that it has nothing to do with the shuttering of the hotel but it was in the process of appointing Financial Advisor (FA) Consortium to undertake the leasing of Roosevelt Hotel site.

The officials aware of the development informed that the decision of shuttering Roosevelt Hotel was not taken in sudden. They said that the hotel was facing financial losses for the last few years, which resulted in its closure. The hotel had suffered a loss of $1.5 million during 2019. The hotel was earning profit till 2015, according to the officials of Ministry of Privatization.

The board of Roosevelt Hotel in its emergency meeting held on July 3 this year had proposed that the hotel’s operations should be shut down because it has fallen into a debt trap.

The Economic Coordination Committee (ECC) in August this year had approved $105 million for the payment of all liabilities and responsibilities of the hotel. At that time, the ECC was informed that even partial operations of the hotel were not sustainable at the moment.

Roosevelt Hotel had acquired a loan of $105 million from JP Morgan, an American financier, at an interest rate of 5.05% with maturity in April 2021, according to some official documents seen by The Nation. Annual interest payment had been calculated at approximately $6 million. JP Morgan later sold its loan of worth $68.25 million to MSD PCOF Partners. The sale of the loan complicated the situation for Roosevelt Hotel due to certain reasons. For the past several years, MSD has been expressing its desire to be a joint venture partner in the development of Roosevelt Hotel’s site, an official said. MSD may attempt to leverage its position in achieving the goal, the official sources said adding that it also holds air rights in the vicinity of Roosevelt.