Pakistan’s Roosevelt problem: Adviser resigns from key asset sale, as country faces high debt

The financial adviser overseeing the privatisation of Pakistan’s Roosevelt Hotel in New York resigned, forcing the country’s Pri­vatisation Commission to look for a new firm. The leading global real estate services firm, Jones Lang LaSalle (JLL), was acting as the final adviser for the hotel privatisation project.

The firm noted that it is quitting its role, citing a “potential conflict of interest” for its decision, Dawn reported. JLL, which had recommended the joint venture model for the Roosevelt, a 1,015-room historic hotel in Midtown Manhattan, has conveyed its decision to the Privatisation Commission.

Announcing the resignation of the firm, the Pakistani Privatisation Commission said on Thursday that it is initiating the process to hire a new financial adviser.

The urgency can be reflected by the fact that the commission noted that the hiring will be done on a “fast-track” basis to ensure that the privatisation of Roosevelt Hotel proceeds “transparently and competitively”.

Meanwhile, JLL cited “hei­ghtened interest” in the hotel from many of its own clients and cancellation of its lease agreement with New York City as the reason for its withdrawal from the project.

The firm noted that these issues had put the company in a “compromising position”, and it was resigning “to avoid any perceived or actual conflict of interest”.

According to Pakistani news outlet Dawn, JLL was appointed as the financial adviser in January 2024 to advise the government on the privatisation of the hotel.

The company has already conducted due dilige­n­­ce on the property and sub­­mitted transaction structure reports, analysing a range of options in line with international best practices.

It is pertinent to note that business at the hotel was suspended in 2020 following financial losses incurred during the COVID-19 pandemic.