New York City has terminated its $220 million lease agreement with the Roosevelt Hotel, owned by Pakistan International Airlines (PIA), following public criticism regarding the use of taxpayer money to accommodate asylum seekers. Mayor Eric Adams announced the decision on Monday, citing financial prudence and a decline in migrant arrivals as key factors driving the move.
The Roosevelt Hotel, a storied Manhattan establishment that opened in 1924, had been serving as a shelter for migrants. It reopened in 2023 after closing in 2020 due to financial difficulties worsened by the Covid-19 pandemic. The facility played a crucial role in New York City’s response to the migrant crisis, acting as a processing center for those sent from Texas under a controversial policy by the state’s conservative governor.
Mayor Adams, under pressure from federal authorities and right-wing critics, stated that the termination of the lease reflects a strategic shift in the city’s emergency response, aiming to conserve millions of dollars in public funds. The hotel, with its 1,025 rooms, had accommodated tens of thousands of migrants, costing the city approximately $200 per night per room.
The number of migrants arriving in the city has significantly decreased, from a peak of 4,000 per week in 2023 to around 350 currently. This drop in arrivals has prompted city officials to reassess their strategies and resource allocations.
Originally, the hotel was leased to New York City for three years starting in June 2023, as part of a deal with the PIA. Meanwhile, plans for a joint venture development of the Roosevelt Hotel were initiated in 2024 as PIA moved towards privatisation. The hotel, named after former U.S. President Theodore Roosevelt, once hosted America’s elite but in recent years became a refuge for migrants primarily from Latin American countries.
The Roosevelt Hotel has a complex ownership history, having been leased by American developer Paul Milstein to PIA in 1979. In 2000, PIA and Saudi Prince Faisal bin Khalid acquired the hotel, with PIA later buying out the Prince’s stake.
The decision to end the lease reflects New York City’s ongoing efforts to balance humanitarian concerns with fiscal responsibility, as the city continues to navigate the challenges posed by the migrant influx and its impact on local communities.
