The Privatisation Commission of Pakistan has initiated the process of appointing a financial advisor to recommend the government in the leasing of the Roosevelt Hotel in New York, US, as reported by Dawn.

According to a June Dawn report, the state-run Pakistan International Airlines (PIA) Investment Limited (PIAIL) has given a lease of the building to the New York City government for a period of three years.

After a decision by the Cabinet Committee on Privatisation in August, the commission invited proposals for a financial advisor.

The financial advisor will recommend that the government undertake the leasing of the Roosevelt site for prospective mixed-use development via the privatisation mode.

According to the government, the commission will oversee the leasing of the site with the aim of establishing a joint venture project for the potential mixed-use development.

The hotel is planned to undergo conversion into a 40-storey multi-purpose complex that will function as a business hub.

In 2000, the PIA and Prince Faisal bin Khalid bin Abdulaziz Al Saud, the former deputy governor of Asir Province of Saudi Arabia, purchased the hotel for $36.5m, reported TheNews.

It was shut down in 2020 because of losses.

Under an agreement with New York City, the hotel was reopened to provide temporary housing for migrants due to a significant rise in the number of asylum seekers.

Currently, 900 rooms have been leased and the remaining rooms will be made available for rent once the renovation work is finished.

PIAIL anticipates generating $220m in revenue from the hotel's three-year lease agreement with the New York City government.