 "Is New York City paying $220 million in rent to Pakistan-owned Roosevelt hotel?")
The fact that New York City is paying $220 million to rent the Roosevelt Hotel, owned by Pakistan International Airlines (PIA), to house migrants has come under scrutiny after Vivek Ramaswamy, a prominent Indian-American entrepreneur and incoming official in United States President-elect Donald Trump’s administration, labelled the arrangement as “nuts.”
In a post on X, he stated, “A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts.”
What is the $220 million agreement between NYC & Pakistan?
In June 2023, then Pakistan’s Minister for Aviation and Railways, Khawaja Saad Rafique, announced a three-year contract between PIA and the New York City government. The deal would generate $220 million in revenue for PIA, with $18 million in cash directly benefiting the struggling airline .
The agreement involves leasing all 1,025 rooms of the Roosevelt Hotel at $210 per room per night. Initially, only one year of operations was guaranteed, but Rafique had expressed optimism about extending the arrangement for the full three years, reported Geo TV.
He also highlighted that this contract has temporarily alleviated the threat of the hotel being declared a landmark , which would have limited its use and modifications.
What does the NYC hotel’s history tell us?
The Roosevelt Hotel, located at 45 East 45th Street in Midtown Manhattan, opened its doors in 1924 and has since become a symbol of New York’s architectural grandeur. Named after United States President Theodore Roosevelt, the 19-story building was designed in the Italian Renaissance Revival style by George B Post & Son.
Over the decades, the property passed through numerous owners, including Hilton Hotels and Realty Hotels, before PIA acquired full ownership in 2000.
The hotel, boasting over 1,200 rooms, was once known for its unique features, including a pet kennel, child-care services, and an in-house doctor.
However, financial difficulties led to its closure in October 2020 during the COVID-19 pandemic, with mounting liabilities of $25 million. In May 2023, the hotel reopened as a shelter for asylum seekers under an agreement with New York City.
How is the Roosevelt Hotel aiding NYC?
Under Mayor Eric Adams’ administration, New York City has faced mounting pressure to accommodate an influx of asylum seekers. The Roosevelt Hotel has become a critical part of this effort, serving as an arrival center for migrants and offering essential services such as vaccinations and food.
To meet the demand for over 14,000 rooms, the city has rented not only the Roosevelt but also more than 100 other hotels. Critics have pointed out that many of these properties are owned by foreign entities, including Air India and the Taj Group.
Despite the backlash, city officials argue that the deal provides a practical solution to an urgent problem. The hotel’s reopening has also reduced the operational workforce from 479 to 77 employees, addressing previous concerns about its sustainability under US labour laws.
Why is the deal important to Pakistan?
For Pakistan, the Roosevelt deal is part of broader efforts to stabilise its economy . The hotel’s rental agreement aligns with a $1.1 billion bailout package from the International Monetary Fund (IMF), aimed at helping Pakistan avoid a debt default.
The $220 million revenue generated from the hotel lease offers a much-needed financial lifeline for PIA and the nation’s struggling aviation sector.
However, the controversy in the US highlights the growing disagreement of intertwining international agreements intertwined with domestic politics in America. Ramaswamy, co-leader of the newly formed Department of Government Efficiency (DOGE) alongside Elon Musk, has used the deal to critique government waste.
A taxpayer-funded hotel for illegal migrants is owned by the Pakistani government which means NYC taxpayers are effectively paying a foreign government to house illegals in our own country. This is nuts. https://t.co/Oy4Z9qoX45
— Vivek Ramaswamy (@VivekGRamaswamy) December 1, 2024
He argues that New York City’s spending on foreign-owned properties reflects inefficiencies in handling taxpayer funds.
“Had Ramaswamy reviewed the terms and conditions before issuing his biased political statement, he would have faced difficulty in making such claims,” said a commentary on Geo TV, pointing out that Ramaswamy’s statement oversimplified the financial nuances of the agreement.
As Ramaswamy prepares to assume his role in the Trump administration, his criticism of the deal may signal future scrutiny of similar arrangements.
Also Read | Why Vivek Ramaswamy and Elon Musk want to eliminate daylight saving time
With inputs from agencies
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