The Roosevelt Hotel in Midtown Manhattan, operated by the Pakistani government, is now facing a significant financial burden. After receiving approximately $146.6 million in taxpayer funds to serve as a migrant shelter over the past two years, the hotel owes New York City $13.6 million in back property taxes and nearly $1 million in unpaid water bills. This situation raises concerns for local taxpayers and highlights the ongoing challenges surrounding the management of the facility.
The New York City Department of Finance confirmed that the hotel, which is owned by Pakistan International Airlines, entered into a payment agreement in September 2023 while already in debt for $11.6 million. Despite receiving substantial taxpayer support, the hotel has failed to meet its financial obligations, missing a payment of $573,361 due on January 2 and a half-year payment of $3.9 million. A spokesperson from the Department of Finance noted, “This property is currently in default on its payment plan.”
The Roosevelt Hotel has served as a critical intake center for migrants since 2022, accommodating over 173,000 of the 232,000 asylum seekers who arrived in the city. At times, the hotel housed as many as 2,600 migrants nightly under a contract valued at $220 million, which equated to about $202 per room per night. Unfortunately, the conditions deteriorated, with reports indicating that many migrants slept in retail spaces and on sidewalks due to overcrowding.
Adding to the turmoil, the hotel has been linked to criminal activity. The presence of the Venezuelan street gang Tren de Aragua has been noted, with officials alleging that the gang organized moped robbery crews from the hotel. In a tragic incident, a former resident named Jose Ibarra was convicted of murdering University of Georgia nursing student Laken Riley shortly after leaving the Roosevelt.
Looking ahead, the Pakistani government is exploring options for the future of the Roosevelt Hotel. A proposed joint venture with the U.S. government aims to redevelop the site into a supertall skyscraper, which could potentially exempt the property from federal taxes. Such a development might cost the city tens of millions of dollars annually. While a Memorandum of Understanding has been signed, the project remains in early stages, and no official letter regarding tax exemptions has been received by the Department of Finance.
In the meantime, the Pakistani government has been attempting to sell the hotel, which has been under its ownership since 1999. The real estate firm JLL (Jones Lang LaSalle) was engaged to solicit bids, with expectations that offers could surpass $1 billion. However, JLL withdrew from the process due to conflicts of interest, leaving the future of the hotel uncertain.
Efforts to communicate with the Pakistani Embassy, the General Services Administration, and the city’s Department of Environmental Protection have not yielded responses regarding the ongoing tax situation and redevelopment plans. As the city continues to manage the implications of the migrant crisis, the fate of the Roosevelt Hotel remains a focal point of concern, not only for local officials but also for the taxpayers who have funded its operation.
